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Lum Chang in deal to acquire Jersey unit trust for £51.32m
CONSTRUCTION firm Lum Chang Holdings on Thursday announced that it had entered into a sale-and-purchase agreement (SPA) on Wednesday to acquire a full stake of the units in a Jersey, Channel Islands unit trust for £51.32 million (S$107 million).
The SPA has been entered via two incorporated special-purpose vehicles in Jersey through the group's 70 per cent owned subsidiary, UK Property Investment (UKPI).
The unit trust, 130 Wood Street Unit Trust, has only one asset - a freehold commercial property, 130 Wood Street, that is currently fully leased.
The property has 50,522 square feet of Grade A office accommodation on six upper floors with 7,454 square feet of ground floor and basement for wine bar accommodation and the remaining 6,809 square feet of ground floor and basement let out on long leases for retail and storage.
Completion of the sale and purchase of the units took place upon the execution of the SPA.
The two vehicles, namely 130 WS Holdings Limited and 130 WS Investments Limited, have an initial paid-up share capital of £1 each, and are incorporated to undertake property investments in the UK.
The unit consideration was satisfied from the internal cash resources of the company and its subsidiaries, via shareholders' loans to UKPI.
The group added that it may explore external debt financing by UKPI to partially offset such shareholders' loans.
As a result of the acquisition, the group's net asset value per share has dropped from 51.96 Singapore cents to 51.73 Singapore cents while earnings per share have increased from 6.73 Singapore cents to 6.86 Singapore cents.
Meanwhile, net gearing has jumped from 0.19 times to 0.48 times.