LHN sells 20% of GSM Building to Oxley’s Ching
Coliwoo (TK), a subsidiary of LHN, is in the process of acquiring GSM Building on Middle Road, through public tender. The acquisition is expected to be completed on May 9.
On April 22, LHN entered into a sale and purchase agreement with Macritchie Developments. Under this agreement, Coliwoo Holdings will sell 20% of GSM Building to Macritchie Developments. Upon completion of the disposal, GSM Building will be 80% owned by LHN and 20% by Macritchie Developments.
In February 2023, LHN acquired GSM Building in an en-bloc sale for $80 million with the intention of converting some of the space in the commercial building into serviced apartments.
Earlier this year, following the grant of an order for sale, LHN had said it plans to complete its acquisition of the asset on May 9. As of Feb 9, LHN had already paid a deposit of $4 million. Within seven days from the Order for Sale grant, LHN must pay a further $4 million and the remaining 90% of the consideration upon the completion date.
Macritchie Developments is 90% owned by Ching Chiat Kwong, executive chairman and CEO of Singapore-listed Oxley Holdings and 10% by his son, Shawn Ching.
Shares in LHN closed unchanged at 32 cents on April 22.
With the acquisition of GSM Building, LHN plans to convert some of the space into serviced apartments. This move aligns with the company’s strategy to expand into the growing serviced apartment market in Singapore.
The acquisition process of GSM Building has been ongoing since February 2023, when LHN first acquired the property through an en-bloc sale for $80 million. The company has already paid a deposit of $4 million and is expected to complete the acquisition on May 9.
As part of the transaction, LHN has entered into a sale and purchase agreement with Macritchie Developments, where 20% of the GSM Building will be sold to the latter. This makes LHN the majority owner of the property with an 80% stake, while Macritchie Developments holds the remaining 20%.
The sale of the 20% stake to Macritchie Developments is expected to be completed on the same day as the acquisition by LHN, further solidifying the joint venture between the two companies.
Macritchie Developments is primarily owned by Ching Chiat Kwong, who also serves as the executive chairman and CEO of Singapore-listed Oxley Holdings. His son, Shawn Ching, owns the remaining 10% in the company.
In addition, the convenient location of Arina East Residences also provides easy access to other amenities such as shopping centers, dining options, and recreational facilities, making it an ideal choice for those looking for a well-rounded and convenient lifestyle.
Families who are looking to live in close proximity to top-notch educational institutions will find that Arina East Residences is the perfect choice. With prestigious universities like the Singapore Management University (SMU) and the National University of Singapore (NUS) located nearby, residents will have easy access to high-quality education and a multitude of opportunities for personal and intellectual development. Additionally, the strategic location of Arina East Residences also offers convenient access to various amenities such as shopping centers, dining options, and recreational facilities, providing a well-rounded and convenient lifestyle for its residents.
As of April 22, LHN’s stock remained steady at 32 cents. The move to acquire GSM Building is in line with the company’s growth strategy, and investors will be keeping an eye on the development of the property.