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Chip Eng Seng Corporation, via its wholly owned subsidiary in Australia CES Properties (Aus), has entered into an agreement to sell its office building (pictured) in Melbourne for AU$68.84 million (S$74 million).
Located at 420 St Kilda Road, the tenanted freehold office building is nestled on a 2,286 sq m site. It has a total net lettable area of 10,459 sq m and 134 car parking lots. The legal completion date of the sale is on 31 August 2017.
In an SGX filing, the company revealed that the property’s disposal price “was arrived at after arms’ length negotiations between CES Properties and the purchaser, and on a ‘willing-buyer, willing-seller’ basis”, taking into account several commercial factors including the property’s location, the investment yield as well as the recent transacted prices of properties in the vicinity.
Chip Eng Seng expects the transaction to positively contribute to the consolidated net tangible assets and earnings per share of the group for the financial year ending 31 December.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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