Cortina Holdings to buy 15 Scotts Road floor for S$49 million
Wong Pei Ting
CORTINA Holdings will buy over the fourth level of 15 Scotts Road, a freehold commercial building, from Singapore Institute of Management Group for S$49 million, the luxury watch retailer and distributor announced on Tuesday (Oct 4).
In a bourse filing, the mainboard-listed company said the proposed acquisition came as the group foresees needing more office space given that it envisages “organic growth” in the near term, but prefers to own rather than rent the space from others.
Currently, the group’s offices in Singapore operate from leased premises. Some of the leases would terminate in the near term, it pointed out.
“The property would be able to satisfy our group’s need for office space in the near term when the existing tenancies to which the property is subject terminate at the end of their terms,” it said.
If the sale goes through, the company’s earnings per share is expected to rise to 41.7 Singapore cents, from 41.5 cents, based on the assumption that the proposed acquisition had been effected at the beginning of the 2022 financial year, Cortina pointed out.
Cortina intends to pay for the property in cash. So far, it said it has paid S$490,000 to be granted the option to purchase. It now has till 4 pm on Oct 14 to exercise the option, upon which another S$1.96 million is due.
The rest of the sum will be paid by Dec 1, the date of the sale’s completion, it added.
Cortina shares closed 6.3 per cent or S$0.25 lower at S$3.70 on Tuesday, before the announcement.
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