Phoenix Heights sold en bloc for S$33.1 million to OKP Holdings associate

AN associate of OKP Holdings has won the tender for the collective sale of 32-unit Phoenix Heights in Bukit Panjang, the mainboard-listed construction engineering company said on Tuesday.

The 25 per cent-owned USB Holdings Pte Ltd bid S$33.1 million for the 99-year leasehold condominium in Phoenix Avenue, with the price reached "after taking into account the prevailing market conditions and market prices of properties in the surrounding area", according to OKP's announcement.

Zoned for residential use, the property has a site area of 3,971.9 sq m (42,750 sq ft), with a maximum allowable gross floor area of 5,560.66 sq m, a maximum height of five storeys and a gross plot ratio of 1.4.

Phoenix Heights was completed in 1969 and has 50 years left on its lease. USB intends to apply for a fresh 99-year lease and will redevelop the property if it gets the green light from the relevant authorities, said OKP.

The group added that it will fund its share of the purchase price by internal resources and/or bank borrowings. The acquisition is not expected to have a material impact on the earnings per share or net tangible assets per share for the year to Dec 31.

Other than OKP, the Hwa Seng Group's HSB Holdings, Chye Joo Construction's B&D Investment and Property, and Ho Lee Group each also have a 25 per cent stake in USB, according to a previous filing on July 2.

A tender deposit of S$180,000 has already been paid, while 10 per cent of the purchase price is due within 14 days of the bid being accepted on Monday.

"The deal was closed after the new measures, so it was quite a surprise," said ERA Realty senior division director Anna Tan, referring to the property cooling measures that kicked in on July 6.

OKP closed up by half a Singapore cent, or 2.27 per cent, to S$0.225, before the announcement.