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Fragrance Group completes sale of Australian property for A$140m

FRAGRANCE Group announced on Tuesday that its wholly-owned subsidiary Fragrance VIC-MEL (Collins) sold its property located at 555 Collins Street, Melbourne, Australia for A$140 million (S$137.5 million).

The total consideration for the sale, excluding goods and services tax, has been satisfied wholly in cash upon completion on Oct 26.

The sale of the property was concluded after consideration of various factors, such as the slow take-up of the units in the development on the property and the higher construction cost as a result of a general rise in construction activities in Melbourne.

Fragrance said in a filing to the Singapore Exchange that it is of the view that the sale is in the best interests of the group as it could realise the value of the property.

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The sale will contribute positively to the financial results of the group in the financial year ending Dec 31, 2018. The sale proceeds will strengthen the cash position of the group as there are no loans or encumbrances on the property on sale.

Fragrance VIC-MEL (Collins) has terminated the sale of individual residential units in the development proposed on the property and has made arrangements to refund the deposits collected from buyers. The buyers will also be offered an opportunity to buy units available in other development projects owned by the group in Australia.