Coliwoo West, an indirect wholly-owned subsidiary of LHN Group has, on Sept 23, entered into the option to purchase with Chamber Investment Holdings for the sale and purchase of a property at 48 Arab Street.
Chamber Investment Holdings is a private company engaged in short-term accommodation activities and food and beverage business.
The option forms the binding sale and purchase agreement for the property upon the execution of the option to purchase. The purchase of the property comes at a consideration of $6.39 million.
The consideration will be paid in two parts – first, a deposit of $319,400 exclusive of GST, and the remaining balance of $6.07 million exclusive of GST.
The property, which has a total land area of 122.9 sqm (1322.88 sq ft) and a remaining lease of 29 years, was sold on an “as is where is” basis and with vacant possession.
The property is currently used by Chamber Investment Holdings as a backpacker hostel.
No information on the book value nor the net profits (both before and after taxation and extraordinary items) attributable to the property was made available.
According to LHN Group, it intends to operate the property as a co-living space, which will expand the group’s portfolio of properties under the co-living business in Singapore. The acquisition of the property will also increase the brand value of Coliwoo, provide potential capital appreciation and provide additional opportunities to generate revenue, says LHN Group.
Shares in LHN Group closed 0.5 cent lower or 1.75% down at 28 cents on Sept 23.
