LHN to buy Rangoon Road property for S$14.5 million

LHN ’s indirect wholly-owned subsidiary has entered into an option to purchase 99 Rangoon Road for S$14.5 million, with plans to convert the property into a student hostel with retail or food and beverage on the first floor.

On Monday (Aug 7), the purchaser, Coliwoo (Sin Ming), paid a deposit of S$725,000 to the seller, Rangoon 99, which is owned by an independent third party. The amount is equivalent to 5 per cent of the consideration.

The real estate management services group said the remaining balance of S$13.78 million excluding goods and services tax (GST) will be paid on the completion date, which will fall around Oct 16.

99 Rangoon Road is an estate in fee simple property near Farrer Park MRT station with a total land area of 242.6 square metres.

The property is currently leased out at a monthly rental of S$34,000 before GST and a security deposit of S$66,000 for the Mar 15, 2023, to Feb 14, 2024, period. Its sale to Coliwoo is subject to the tenancy agreement dated Jan 26, 2023.

The group noted that the vendor did not disclose any information on the book value or the net profits attributable to the property, as Coliwoo is acquiring the property and not the business of Rangoon 99.

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The acquisition, upon completion, will expand the group’s portfolio of residential properties in Singapore, which will provide potential capital appreciation and additional opportunities to generate revenue, said the group.

Shares of LHN closed down 2.8 per cent or S$0.01 at S$0.35 on Monday before the announcement.