>

Cityneon to acquire Scorpio East Properties from KOP for $2.9 mil

By Stanislaus Jude Chan

/ The Edge Singapore |

December 18, 2017 11:01 AM SGT

SINGAPORE (Dec 15): Cityneon Holdings has entered into a sale and purchase agreement to acquire the entire 100% interest in Scorpio East Properties from Catalist-listed KOP Limited for $2.9 million.

Scorpio East owns a 2,571 sqm leasehold property located at 25 Tai Seng Avenue in Singapore, also known as KOP Building, which has some 20 years left on its lease.

This is to be extended by another 29 years from the lease expiry date, subject to the fulfilment of certain conditions prescribed by Jurong Town Corporation (JTC).

Under the agreement, Cityneon will also assume the liability for repayment of a $23 million loan obtained by Scorpio East from Hong Leong Finance.

The loan is secured by, amongst others, a mortgage on the property in favour of the bank as well as a charge over the amount of $500,000 in Scorpio East’s fixed deposit account with the bank.

Cityneon says the proposed acquisition is a strategic investment in a building which the group may use to expand its office space as a creative design suite, as well as derive rental revenues from the remaining units, which will be added to the earnings of the group.

It adds that it may also consider future business collaborations with KOP under the Scorpio East brand.

Given KOP’s familiarity with major movie studios and experience in the entertainment industry in Singapore and across Asia, Cityneon says this could enhance the group’s design capabilities and expansion of its portfolio in the entertainment and media industry.

The acquisition will be funded via internal cash resources.

In a separate filing to SGX on Friday, KOP says the proposed disposal will enable the group to realise the value of the property, as well as provide liquidity and cash capital.

It adds that the entire proceeds arising from the disposal will be used for the financing of the group’s working capital.

This story, written by Stanislaus Jude Chan for The Edge Singapore, first appeared on Dec 15.

Tags:

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

Emerald of Katong hits 99% sales at launch, averaging $2,621 psf

2

Kingsford sells 76% of Chuan Park units at an average price of $2,579 psf

3

Is it a Good Deal?: $1.03 million for a four-room HDB flat in District 10

4

Sim Lian Group’s Emerald of Katong: Will it be another top-seller?

5

CDL sells 20% of Union Square Residences at an average price of $3,200 psf

Our Site

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.