SINGAPORE (Apr 17): Raffles Education Corporation (REC) is seeking to sell the property at 1-3 Fitzwilliam Street, Parramatta, New South Wales, Australia.

Raffles Assets Australia (RAAPL), a wholly-owned subsidiary of REC, on Monday entered into a non-binding heads of agreement with Propertylink (Holdings) (PHL) in relation to the proposed sale.

The parties intend to enter into a definitive agreement in the form of a put and call option agreement.

The consideration for the proposed sale is A$82 million ($83.6 million) excluding GST.

The property is a six-story commercial building with a land size of approximately 22,000 sf and has a net lettable area of 105,000 sf. Part of the property is currently being leased out by RAAPL to Raffles College (RCDC), a wholly-owned subsidiary of REC.

Under the agreement, RAAPL will provide an income support arrangement to the purchaser for a period of 12 months from the completion date in respect of the vacancy on level 3 of the property at a rate of A$440 psm (net).

REC will make further announcements when there are material developments in respect of the proposed sale.

Shares in Raffles Education closed 1.5 cents lower at 20 cents on Monday.