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Hupsteel Limited on Thursday announced that it had sold its property at 359 Jalan Besar via public auction at a cash consideration of S$5.23 million plus GST
In an SGX filing, Hupsteel revealed that the sale took into account “the latest open market value of S$4.4 million based on professional valuation by CKS Property Consultants Pte Ltd using market comparison method on 23 May 2017”.
It believes that the property’s value can be released by selling it above its market valuation through public auction.
This comes as the property is not an integral part of Hupsteel’s trading operations, while rental yield and occupancy rate from the property has also been below expectation.
The group “hopes not to commit more resources to enhance its rental attractiveness on top of meeting more stringent conservation requirements imposed on the property”.
Aside from this, Hupsteel also plan on focusing “on its mainstream trading operations amidst challenging market conditions”.
The net proceeds of the sale may be used to repay current bank borrowings, deposited with financial institutions and banks as well as used as working capital, it said.
Notably, the S$5.3 million consideration is higher than the property’s book value by S$4.58 million.
This article was edited by Denise Djong.
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