OKP Holdings’ 51%-owned subsidiary, Raffles Prestige Capital, has exercised the option to purchase the properties at 69 and 71 Kampong Bahru Road from Pek Geok Khee and Aw Jieh Yui Midori for a consideration of $12.38 million.

The properties have a freehold tenure and comprise a pair of adjoining two-storey conservation shophouses.

They occupy a land area of around 2,343 sq ft and have a gross floor area (GFA) of 5,947 sq ft.

The properties are being purchased for investment purposes.

SEE:OKP Holdings reverses from losses to earnings of $3.3 mil for FY20

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The open market value as at April 20 is $12.38 million, according to the valuation by RHT valuation, commissioned by OKP Holdings.

The option money of $123,800 has been paid upon the grant of the option to purchase, along with an additional sum of $495,200.

The balance sum of $11.76 million will be paid upon completion, which is within three months of the exercise of the option.

The properties were sold subject to the existing tenancies and sold “contemporaneously and jointly” by the vendors (Pek and Aw) and is subject to “all restrictive and other covenants, terms and conditions, planning or development or redevelopment conditions and restrictions, party wall rights, easements and reservations affecting the same”.

Shares in OKP closed flat at 19.7 cents on May 4.