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Lian Beng Group’s 32 percent owned associate firm, Epic Land Pte Ltd, has agreed to sell 17 strata office units at Prudential Tower for S$206.59 million, translating to S$2,600 per square foot (psf) based on their combined area of 79,459 sq ft.
“The consideration was arrived on a willing-buyer willing-seller basis, which has taken into account, inter alia, the shareholder’s loan due to Epic Land, the cost of the properties and the prevailing market conditions. It will be satisfied in cash by the purchaser, which will pay a deposit of S$20.66 million following the signing of the sale and purchase agreement (SPA),” said Lian Beng in an SGX filing.
The 17 strata office units are held by Epic Land’s 12 wholly-owned subsidiaries, whose entire issued and paid-up capital will be divested to an unrelated third party to carry out the transaction. On the other hand, Business Times believes that the buyer is an account overseen by One Tree Partners, a fund management firm.
Lian Beng noted that no valuation was done on these firms. As of 31 December 2016, their aggregate unaudited net asset value, was approximately S$915,804, after deducting the outstanding shareholder’s loan owed by these firms to Epic Land.
Targeted to be completed by March, the proposed disposal is expected to have a positive impact on the net earnings per share or the net tangible assets per share of Lian Beng Group for the financial year ending 31 May 2017.
Christopher Chitty, Senior Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email christopher@propertyguru.com.sg