Oxley Holdings Limited had exercised an option to acquire the freehold property at 494 Upper East Coast Road for S$10.5 million.
With a land area of 1,292.1 sq m, the property is zoned “part residential/part road”.
In an SGX filing, Oxley revealed plans to “redevelop the property, subject to obtaining all the necessary approvals from the relevant authorities”.
It noted that the purchase price was “arrived at on a willing buyer-willing seller basis after taking into account current market prices of properties in the surrounding area and the company‘s assessment of the property’s redevelopment potential”.
To be funded by bank borrowings and internal resources, the purchase is expected to be completed on 16 August 2017.
The group does not expect the acquisition to materially affect its net tangible assets per share or earnings per share for the current financial year ending 30 June 2017.
This article was edited by Denise Djong.
