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A wholly-owned unit of property development and construction firm Lian Beng Group exercised an option on Monday (12 March) to purchase the OCN Building in 381 Joo Chiat Road from TTAT Investment for $27 million.
According to an SGX filing released on the same day, its subsidiary Lian Beng (Joo Chiat) agreed to acquire the four-storey commercial property at Lot 9382L Mukim 26. It comes with an attic and basement car park, and has a gross floor area of about 24,714 sq ft.
“The purchase consideration was arrived based on arm’s length negotiations between the parties on a willing buyer-willing seller basis after taking into consideration the prevailing market conditions and the current market prices of properties in the surrounding vicinity of the property,” Lian Beng said.
“The proposed acquisition is in line with one of the group’s core business activities in property investment. The group views the proposed acquisition as a good opportunity to participate in a strategic investment where the group can derive rental returns.”
Upon completion of the transaction, TTAT Investment will lease OCN Building from Lian Beng for five years starting from the completion date, with an option to renew for an additional three years.
The purchase consideration will be financed via bank loans and/or internal resources.
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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