Heeton subsidiary enters sale agreement for The Woodgrove at S$55.85 million

Published Tue, Dec 5, 2017 · 11:09 AM
Share this article.

PROPERTY developer Heeton Holdings on Tuesday announced that its wholly owned subsidiary Heeton Estate has entered into an agreement involving the sale of The Woodgrove along Woodlands Avenue 1 for S$55.85 million.

With the proposed sale, the Singapore-based purchaser who was not named had paid a deposit of S$10,000 with a further S$5.575 million to be paid within three days from the date of agreement. The balance will be payable upon the completion of the proposed disposal.

The Woodgrove, which is on a leasehold term of 99 years, has an unexpired lease term of approximately 78 years and has a strata floor area of 5,144 sq m.

Based on a financial statement for its third-quarter earnings, the net asset value of the property was worth approximately S$33 million, with the net gain from the proposed disposal approximately S$22 million, Heeton Holdings said in an after-market filing with the Singapore Exchange.

Heeton Holdings also said costs of upgrading the property to compete with bigger malls would incur additional capital expenditure and result in a loss of income.

With the sale, the property developer intends to enhance its cash flow and direct resources to be used on potentially higher-yield investments such as the acquisition of potential development property and hospitality assets.

Shares of Heeton Holdings ended S$0.005 or 0.9 per cent up at S$0.545 on Tuesday.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Companies & Markets

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here