MEDIA CLARIFICATIONS BY THE MANAGEMENT BOARD OF CITY HARVEST CHURCH
On March 7, 2010, The Straits Times published an article titled “City Harvest paying $310m to become Suntec co-owner”, followed by a March 20, 2010, article titled “COC Questions City Harvest Church”.
The Management Board of City Harvest Church would like to clarify that CHC’s conduct has not at any time been questioned by the Commissioner of Charities. The COC did, however, request additional details, which were gladly provided by CHC.
The Board would also like to clarify the following facts:
1. Our Church, through a special purpose investment holding company wholly owned by CHC, has acquired and holds an indirect minority stake in the holding company of Suntec Convention Centre. The minority stake is therefore not directly held by the Church, as suggested by The Straits Times. The use of this special purpose investment holding company facilitates distinct accounting for the investment and segregates the investment from the other regular activities of the Church. It does not have charitable status and is not entitled to any tax or other concessions.
2. CHC’s investment in the Convention Centre is a prudent and considered decision. It is specifically intended to hedge the Church against its rental costs at the same Convention Centre, and dividends received will help to defray rental costs. Therefore the Board does not consider this investment to be subjecting the Church’s assets and resources to an unacceptable risk.
3. CHC reiterates that the sum of $310 million mentioned in the articles is not the value of the building, but rather the sum of various costs to CHC. These costs include rental cost over the licensed period, renovation and equipment costs, rental deposits, periodic shifting costs, etc. and it does not represent solely the cost of the minority stake.
4. Neither CHC nor its special purpose investment holding company is involved in the daily operations of the Convention Centre. The Convention Centre is managed by Suntec Singapore International Convention and Exhibition Services Pte Ltd, a wholly-owned subsidiary of ARA Asset Management Ltd.
5. CHC does not have exclusive use of any areas. Suntec Singapore continues to actively market all the spaces to attract major events to the exhibition and convention centre.
On March 7, 2010, The Straits Times published an article titled “City Harvest paying $310m to become Suntec co-owner”, followed by a March 20, 2010, article titled “COC Questions City Harvest Church”.
The Management Board of City Harvest Church would like to clarify that CHC’s conduct has not at any time been questioned by the Commissioner of Charities. The COC did, however, request additional details, which were gladly provided by CHC.
The Board would also like to clarify the following facts:
1. Our Church, through a special purpose investment holding company wholly owned by CHC, has acquired and holds an indirect minority stake in the holding company of Suntec Convention Centre. The minority stake is therefore not directly held by the Church, as suggested by The Straits Times. The use of this special purpose investment holding company facilitates distinct accounting for the investment and segregates the investment from the other regular activities of the Church. It does not have charitable status and is not entitled to any tax or other concessions.
2. CHC’s investment in the Convention Centre is a prudent and considered decision. It is specifically intended to hedge the Church against its rental costs at the same Convention Centre, and dividends received will help to defray rental costs. Therefore the Board does not consider this investment to be subjecting the Church’s assets and resources to an unacceptable risk.
3. CHC reiterates that the sum of $310 million mentioned in the articles is not the value of the building, but rather the sum of various costs to CHC. These costs include rental cost over the licensed period, renovation and equipment costs, rental deposits, periodic shifting costs, etc. and it does not represent solely the cost of the minority stake.
4. Neither CHC nor its special purpose investment holding company is involved in the daily operations of the Convention Centre. The Convention Centre is managed by Suntec Singapore International Convention and Exhibition Services Pte Ltd, a wholly-owned subsidiary of ARA Asset Management Ltd.
5. CHC does not have exclusive use of any areas. Suntec Singapore continues to actively market all the spaces to attract major events to the exhibition and convention centre.
