Hong Lai Huat unit to buy Cambodia land plot for US$22.5m

A WHOLLY-OWNED subsidiary of real estate and agriculture firm Hong Lai Huat Group on Friday entered into an agreement with Lao Channara to acquire a plot of land in Phnom Penh for mixed-use property development for a purchase price of US$22.5 million.

The mainboard-listed company said in a bourse filing on Saturday that the subsidiary, Public Housing Development (Cambodia), acquired the 1.2-hectare freehold land plot, located in Toul Kork district in the Cambodian capital.

The transaction is part of the group's continued efforts to look for development opportunities around the region, Hong Lai Huat said.

The purchase price for the land was agreed on after taking into account the location and development prospects of the property, among other factors, it added.

Hong Lai Huat will finance the transaction by internal funds and bank borrowings, it said. The transaction is not expected to have any material impact on the group's net tangible assets or earnings per share for the financial year ending Dec 31, 2020.

The agreement will complete within 180 days from Sept 11, it added.

The counter was trading at 17.7 Singapore cents as at 10.32am on Monday, up 0.6 cent or 3.5 per cent.