LHN unit to purchase River Valley Road property for S$8.5m

PROPERTY company LHN 41O announced on Tuesday (Feb 22) that its indirect wholly owned subsidiary is planning to purchase a property at River Valley Road for S$8.5 million.

The subsidiary had entered into an option to purchase (OTP) with UOB for the proposed acquisition

The freehold property, located at 298 River Valley Road, has a land area of 205.4 sq m and will be delivered with vacant possession on completion.

The total gross floor area of the proposed building is 571.22 sq m with a commercial gross floor area of 146.04 sq m and residential gross floor area of 425.18 sq m.

LHN intends to operate a co-living space there under the Coliwoo brand. This will expand the group's portfolio of properties under the co-living business in Singapore, it said.

It will also increase the brand value of Coliwoo, provide potential capital appreciation to the group and provide additional opportunities to generate revenue.

A deposit of S$850,000 excluding GST was paid by LHN's subsidiary to UOB through internal sources of funding.

The remaining balance of S$7.65 million excluding GST is to be paid 10 weeks from Feb 22, and will be funded by internal sources of funding and bank borrowings.

The sale and purchase of the property at River Valley is subject to the approval of the Controller of Residential Property (Land Dealings (Approval) Unit, SLA).

Shares of LHN ended Tuesday flat at S$0.31.