SINGAPORE (Mar 24): Far East Group has granted Chang Hua Construction an option to purchase its property at 112 Lavender Street for $27 million.

The property is a four-storey building and occupies a land area of approximately 1,936 square metres. The property is a freehold estate and it serves as the regional headquarters of the group’s operations. As at Dec 31, 2017, the property has a net book value of $4.2 million.

The sale follows Far East's acquisition of the property situated at 51 Ubi Avenue 3 with the intention of making it the new regional HQ of the group’s operations.

Far East said the net proceeds from the proposed disposal of approximately $26.2 million, after deducting related fees and expenses of approximately S$0.8 million, will be utilised for working capital, business expansion and future investment opportunities.

Shares in Far East closed at 8 cents on Friday.