GSH enters sale and purchase agreement to sell Raffles Place office units for S$38.8 million
MAINBOARD-listed GSH Corporation has entered into a sale and purchase agreement for the disposal of nine strata office units in Raffles Place for a consideration of S$38.8 million, the company said on Wednesday (Jul 12).
The units are on the 28th floor of the Plus building on Cecil Street. Collectively, they have been valued at S$37 million by an independent professional valuer. They represent a gross floor area of approximately 901 square metres.
The purchaser, who was not named, is an unrelated party with no shareholding interest – direct or indirect – in the company or group.
The buyer will pay a S$3.88 million deposit upon inking the agreement, with the remainder to be paid upon completion of the disposal, which will take place within two months of the agreement date.
The book value of the property is about S$27.1 million, based on the company’s latest audited consolidated accounts from the 2022 financial year. The excess of the proceeds from the sale over the book value is S$11.7 million.
GSH said that net proceeds from the proposed disposal will be used by the group to repay existing financing taken against the property, as well as for working capital purposes.
Assuming that the disposal had been completed on Dec 31, 2022, the consolidated net tangible asset per share of the company would have been S$0.16 for FY2022, against S$0.15 before the transaction, the company said.
If the disposal had been effected from Jan 1, 2022, GSH’s loss per share in FY2022 would have been 0.36 Singapore cents, rather than 0.95 cents without the sale.
“The proposed disposal provides a good opportunity for the company to unlock its investment in the property,” the company said. The counter closed flat at S$0.175 on Wednesday, before the announcement.
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