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Singapore’s Lian Beng Group, plans to dispose Midlink Plaza on 122 Middle Road by selling its holding company for S$270 million, according to media reports.
The property is held by 122 Middle Investment and the disposal will be carried out by Lian Beng’s subsidiaries Billion Land and Millenium Land.
Taking into account Midlink Plaza’s carrying cost of S$146.4 million and construction cost of S$70 million, the transaction is expected to generate a post-tax profit of S$44.5 million.
Given Lian Beng’s effective stake of 19 percent in the property, its share from the disposal would be S$8.5 million, said OSK-DMG. With this one-off gain, the company’s earning for FY2015 is expected to increase by 14 percent to S$69 million from S$60.5 million previously.
Meanwhile, Lian Beng’s partly-owned subsidiary Epic Land is buying 92.8 percent of the aggregate strata area in Prudential Tower from Keppel REIT for S$512 million.
“Assuming an average selling price (ASP) of S$2,600psf, we expect Lian Beng to see a S$23.3 million profit boost after tax. As the company is currently in the process of obtaining approval for the deal, we have yet to factor in any earnings from it,” added the research firm.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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