LHN Group announced that on Sept 16, its indirect wholly-owned subsidiary is acquiring a property located in Pasir Panjang for $30.0 million (excluding goods & services tax).
The group has placed a deposit of $1.5 million for this acquisition, with the remaining balance to be paid on the completion date.
The deposit was funded through internal sources, while the group will fund the remaining balance by a combination of internal sources of funding and bank borrowings.
The property is located at 404 Pasir Panjang Road, which has a total land area of 1,544.6 sqm and is an estate in fee simple property. It is currently operated as the Pasir Panjang Inn and a certificate of registration under the Hotels Act 1954 of Singapore has been issued to the property.
While there is no further financial information on the current business on the property, the group will be acquiring it with vacant possession. After which, the group intends to operate the property as a co-living space. LHN Group is known for its Coliwoo co-living brand.
Once the property commences operations, it will expand the group’s portfolio of properties under the co-living business in Singapore, increase brand value of Coliwoo, provide potential capital appreciation to the group and provide additional opportunities to generate revenue.
Hence, the board views this deal as fair and reasonable, on normal commercial terms, and are in the interests of the company and the shareholders as a whole.
Shares in LHN closed at 28 cents on Sept 16.
Photo: Samuel Isaac Chua/ The Edge Singapore