Coffeeshop operator Koufu Group has granted an independent third party purchaser an option to purchase its properties located at 18 and 20 Woodlands Terrace for a consideration of $11.8 million.

The agreement was entered into by the group’s wholly-owned subsidiary, Koufu Pte. Ltd. on March 1.

The proposed disposal is subject to and conditional upon the written in-principal approval from the Jurong Town Corporation.

The purchaser has exercised the option on March 11.

The consideration will be paid fully in cash.

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The group stated in its prospectus on July 11, 2018, that it intended to sell the properties within two years of obtaining its temporary occupation permit (TOP), where the proposed integrated facility of the group is being constructed.

The TOP is expected to be obtained in 1Q2021, as mentioned in an announcement on Feb 23. Operations are expected to be commenced at the facility by 2Q2021.

The consideration was arrived at on a willing-buyer and willing-seller basis after arm's length negotiations, taking into account the valuation of the properties of $10.1 million.

The figure was based on the independent valuation report of PREMAS Valuers & Property Consultants Pte Ltd dated Feb 22.

The valuation was made based on the direct comparison and investment (income) methods.

Shares in Koufu closed flat at 66 cents on March 11.