LHN, a real estate management services group, is expanding its portfolio by purchasing a freehold property located at 99 Rangoon Road, Singapore 218384. The property has a land area of 242.6 square meters and is currently leased out by the seller, Rangoon 99 Pte. Ltd., under a Tenancy Agreement.
The terms of the tenancy are from March 15, 2023, to February 14, 2024, with a monthly rental of S$34,000 (excluding GST) and a security deposit of S$66,000.
The Purchaser is Coliwoo (Sin Ming) Pte. Ltd., an indirect wholly-owned subsidiary of LHN.
LHN's subsidiary has entered into an option to purchase this property for S$14.5 million. A deposit of S$725,000, equivalent to 5% of the total consideration, has been paid to the seller on August 7th. The remaining balance of S$13.78 million, excluding goods and services tax (GST), will be paid on the completion date, estimated to be around October 16.
99 Rangoon Road is near to Farrer Park MRT station.
Coliwoo intention is to convert the property into a student hostel with retail or food and beverage establishments on the first floor. This acquisition is expected to expand LHN's residential property portfolio in Singapore and potentially provide capital appreciation and additional revenue-generating opportunities.
The vendor, Rangoon 99 Pte. Ltd., is an investment holding company wholly owned by Goh Lik Tuan, an independent third party.
Goh Lik Tuan was the founder GES which was listed in the Singapore Exchange in 1999. GES was sold to Venture Corporation for S$980 million in 2006 and was subsequently delisted.
The transaction focuses on acquiring the property itself and not the business associated with the vendor or the holding company of the property. Therefore, detailed information about the book value, net profits, and other financial aspects related to the Rangoon Road Property is not provided by the vendor in this context.