Hafary Holdings plans to acquire a row of shophouses for $71.28 million from Broadway Textile, to be used as its new flagship store.
The property, 161 Lavender Street, has a gross floor area of approximately 45,212 sqft. It comprises a row of 11 contiguous conservation shophouses with 4-storey rear extension and 10 covered car parking lots sitting on an island block.
The property, which has a book value of $73.4 million, has a total frontage of 110-metre along three roads: Lavender Street, Foch Road and Tyrwhitt Road.
“The group is of the view that a centrally located large-format flagship store would allow the group to showcase a wider range of its products in a more accessible and convenient location, in order for the group to better service the needs of its retail customers in Singapore,” says Hafary, which sells floor tiles and other building materials.
Hafary will pay for the acquisition with a combination of bank borrowings and internal resources.
Hafary last traded at 19 cents, which gives it a market value of $80.5 million.