GSH to pocket S$3.88 million as sale of Raffles Place office units falls through

PROPERTY developer GSH Corporation on Tuesday (Sep 5) announced that the sale of nine strata office units in Raffles Place for a total consideration of S$38.8 million has been terminated.

In a bourse filing, GSH’s solicitors said they received a notice from the purchaser’s solicitors stating that the purchaser would not be able to complete the transaction. The purchaser was not named in the company’s announcement of the deal on Jul 12. 

GSH has, as a result, agreed to terminate the sale and purchase agreement after “due deliberation”. It will also recognise an amount of S$3.88 million – the 10 per cent deposit of the deal amount – as “full compensation” and in “full and final settlement” for the termination of the agreement. 

The S$3.88 million sum will be recognised as “other income” in the income statements of the group and company for the current financial year, GSH said. 

The units in question are on the 28th floor of the Plus building on Cecil Street. They were valued at S$37 million by an independent professional valuer. 

GSH said the termination of the proposed disposal is not expected to have a material effect on the consolidated net tangible assets per share of the company and group for the current financial year. 

SEE ALSO

GSH enters sale and purchase agreement to sell Raffles Place office units for S$38.8 million

GSH closes first digital securities issue with S$19.54m raised

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Shares of GSH closed at S$0.17 on Tuesday ahead of the announcement, up 1.2 per cent or S$0.002.