The property at 30, 30A, 30B Lorong 22 Geylang, 32, 32A, 32B Lorong 22 Geylang 32D, 32E, 32F, 32G, 32H and 32J Lorong 22 Geylang acquired for $30 million (Photo: Googlemaps)
LHN Group, a direct wholly-owned subsidiary of dual-listed LHN Ltd, has established a joint venture (JV) with its partners to acquire, develop, market and sell the property at 30, 30A, 30B, 32, 32A and 32B Lorong 22 Geylang and 32D, 32E, 32F, 32G, 32H and 32J Lorong 22 Geylang. According to LHN's filing on Feb 14, the property was purchased for $30 million, excluding GST.
LHN formed its first joint venture with "JV Partner A," which was established so that the group could enter into a second JV with "JV Partner B." The newly created JV, or JV Company B, will acquire, develop, market, and sell the Geylang property.
The newly formed JV has been granted the option to purchase the property, although the option has yet to be exercised. The freehold site is said to be zoned for commercial/institutional use.
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According to the filing, the JV partners intend to demolish and redevelop the property into a new strata-titled commercial building. They intend to sell the units in the open market and lease or operate the remaining unsold units for commercial use.
LHN Group will be the sole project management company in charge of the new JV business.
Ching Chiat Kwong, executive chairman and CEO of SGX-listed Oxley Holdings, owns 90% of JV Partner A. His son, Shawn Ching Wei Hung, Oxley's executive director and group general manager, holds the remaining 10%.
As at Feb 14, JV Partner A is a substantial shareholder of Coliwoo (TK), an indirect non-wholly owned subsidiary of LHN Limited. As such, the JV partner is connected to LHN Ltd at the subsidiary level.
JV Partner B is a Singapore-incorporated investment holding company jointly owned equally by Darren Low Jun Jie, a lawyer, and Tan Hui Kang, a doctor.
The new JV is 58 %-owned by JV Company A and 42 %-owned by JV Partner B. JV Company A is 50 %-owned by LHN Group and 50 %-owned by the JV between Ching and his son. LHN Group and the Chings will pay a maximum contribution of $14.5 million each.
It's not the first time that LHN and the Chings have teamed up. Last year, LHN and the Chings acquired Wilmer Place at 50 Armenian Street for $26.5 million on Apr 9, followed by another deal on Apr 22, involving GSM Building at the corner of Middle Road and Waterloo Street.
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LHN's share price closed at 53 cents on Feb 14.