SINGAPORE (Nov 7): OKH Holdings, a wholly-owned subsidiary of OKH Global, is divesting its three-storey workers’ dormitory at Seatown Industrial  Centre in Tuas South for $24 million.

The purchaser is Tuas Seatown Dormitory, an associated company of OneApex – the egg farmer-turned-property group formerly known as Chews Group.

OKH says it expects to record a gain on disposal of $1 million, based on a valuation of $23 million in a valuation report in July.

The company intends to use the proceeds from the proposed disposal to repay loans secured against the property as well as to fund its working capital requirements.

On its part, OneApex says it intends to commission an independent valuation of the property prior to the completion of the proposed acquisition.

The completion of the transaction is expected to be within three months of the exercise of the option to purchase on Nov 7.

In a regulatory filing, OneApex says the consideration will be funded through a mixture of Tuas Seatown Dormitory’s internal resources, as well as external bank borrowings to be taken up the associated company.

OneApex adds that the proposed acquisition is in line with the group’s strategy to invest into various residential, commercial and industrial properties for rental income or capital growth.

It says the proposed acquisition will also allow the group the opportunity to participate in the expected increase in demand for workers and worker accommodation driven by the upcoming projects in Tuas.

Both OKH and OneApex says the proposed transaction is not expected to have any impact on their respective earnings per share and net tangible assets per share for the current financial year.

Shares in OKH and OneApex closed flat at 1.7 cents and 15.5 cents, respectively, on Thursday.