Second Chance grants option to purchase Lucky Plaza units for S$13.39 million

BETTER Chance Properties (BCP), a subsidiary of mainboard-listed Second Chance Properties , has granted a potential buyer an option to purchase its Lucky Plaza units for S$13.39 million.

The potential buyer of the units, #01-56/57/58/59, is Lew Chee Beng and/or his nominee, Second Chance disclosed in a Wednesday (Jun 29) bourse filing. The option will expire on Aug 1. An option fee of 1 per cent of the sale price has been paid to BCP.

Second Chance said that the popularity of Lucky Plaza has declined and the mall is highly dependent on tourists. With the pandemic, rentals fell to almost half that of pre-Covid levels. It is uncertain whether rentals can revert to pre-pandemic levels in the near future, the company said.

“Therefore, when the company received an unsolicited offer to sell the freehold property, the management was of the view that it was a good opportunity, as well as a prudent business decision, for the company to sell off its property and utilise the proceeds to reduce the debts of the group,” it added.

The S$13.38 million price tag is S$1.79 million higher than the valuation undertaken by Colliers last Aug 31. Second Chance expects the sale to be completed by Jan 31, 2023.

Shares of Second Chance closed at S$0.23 on Wednesday, up 2.2 per cent.