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Lian Beng Group's unit intending to acquire Joo Chiat property

A WHOLLY-OWNED unit of Lian Beng Group is intending to purchase a four-storey commercial building in Joo Chiat for S$27 million that is to be satisfied in cash.

On Monday, the construction cum property developer group said in a Singapore Exchange filing that Lian Beng (Joo Chiat) had on the same day accepted the option to purchase granted by TTAT Investment for the proposed acquisition.

The building, OCN Building, occupies a gross floor area of about 2,300 sqm.

Upon completion of the proposed deal, TTAT Investment will lease the property from Lian Beng (Joo Chiat) for a period of five years from the completion date with an option to renew the lease for a further period of three years.

A lease agreement at terms to be mutually agreed for the rental of the property will be entered one week before the completion date.

The completion of the proposed acquisition is scheduled on the date falling 10 weeks from the date of exercise of option.

The purchase consideration, which will be funded through bank borrowings and/or internal resources, took into account the prevailing market conditions and the current market prices of properties in the surrounding vicinity of the property, Lian Beng said.

It added that the deal is "in line with one of the group's core business activities in property investment".

"The group views the proposed acquisition as a good opportunity to participate in a strategic investment of the property, where the group can derive rental returns which will be added to the earnings of the group."

Lian Beng closed at S$0.67 on Monday, up 1.5 Singapore cents, or 2.3 per cent.