Heeton Holdings, via its wholly-owned subsidiary Heeton Land Pte Ltd, along with Koh Brothers’ unit, Koh Brothers Development, have sold their respective 50 percent shareholdings in their joint venture company Buildhome to Central Core for S$41.6 million.
Buildhome developed and owned the property known as “The Lumos” on 9 Leonie Hill, which still has 36 unsold residential units.
In an SGX filing, Heeton revealed that Toh Giap Eng, “the deputy chairman and executive director and a controlling shareholder of the company, has a 12.5 percent shareholding interest in Central Core.”
It also noted that the S$41.6 million consideration was arrived at “on a willing-buyer and willing-seller basis with reference to the unaudited financial statements of Buildhome as at 28 February 2017 and the agreed value of S$185.6 million for the property”.
It added that the consideration was equally paid to Heeton Land and Koh Brothers Development “in the following manner (a) S$30 million in cash paid on 19 July 2017 and (b) S$11.6 million to be deferred to after completion, which shall be novated to the shareholders of Central Core.”
Meanwhile, Buildhome refinanced the property with the existing lender. And as part of the transaction consideration, Koh Brothers Development and Heeton Land have agreed to “convert the outstanding shareholders’ loans to Buildhome aggregating S$36 million into a three-year promissory note bearing interest at five percent per annum”.
Heeton expects the disposal to positively contribute to its consolidated net tangible assets and earnings per share for the financial year ending 31 December 2017.
This article was edited by Denise Djong.