Lian Beng Group Ltd, via its 42 percent-owned associated company Development 24 Pte. Ltd., has exercised an option to acquire the freehold properties known as 31 to 51 (ODD) Lorong 24 Geylang.
KSH Holdings and Heeton Holdings also holds a 48 percent and 10 percent stake in Development 24.
In a separate SGX filings, Lian Beng, KSH and Heeton said the aggregate consideration for the properties is $60 million, of which $6 million has already been paid during the exercise of the option. They noted that the balance shall be paid within 12 weeks.
Located on a total of 12 lots of land, the properties – which comprise around 26,188 sq ft of land area – could be redeveloped into an eight-storey residential development with a maximum allowable gross floor area of around 73,325 sq ft.
Lian Beng, KSH and Heeton revealed that their respective share of funds for the purchase will be financed by external borrowings and internal funds.
They do not expect the acquisition to materially affect the groups’ net tangible assets and earning per share for the current financial year.
Lian Beng added that Ko Chuan Aun, “an independent director and shareholder of the company, is also an independent director of KSH Holdings Limited”.
This article was edited by Keshia Faculin.