CONSTRUCTION group Lum Chang Holdings said on Saturday that its subsidiary, Wembley Properties, has entered into an agreement to dispose of its interest in several property assets in the United Kingdom.

Wembley Properties owns a subsidiary, Kelaty Holdings, which indirectly holds the freehold interest in a recently-completed 11-storey serviced residence block with 300 rooms in the UK, as well as the long leasehold rights to an ancillary 45-lot car park at the basement of the apartment block.

It will sell Kelaty Holdings to Crosstree Co-Living Holdings for a consideration of around £28.9 million (S$53.1 million) in cash. The completion date is expected to take place 20 business days from the date of the agreement on Sept 24.

Lum Chang said the consideration is also subject to post-completion review and adjustments, if any, which are expected to conclude at the end of this year.

Wembley Properties is 70 per cent owned by Lum Chang, with the remainder owned by another company, Sin Heng Chan (1960).

Lum Chang said the estimated net gain after deducting related transaction costs is around S$850,000, and the group's 70 per cent share of the net gain would be S$600,000. This gain will be reported in the current financial year ending June 2022 upon completion of the transaction.

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"The transaction marks an opportunity for the company to realise its investment in the property, and the company's share of the proceeds will be used to partly fund future investments of the company and its subsidiaries and for working capital purposes," Lum Chang said.

Lum Chang shares closed unchanged at 41.5 Singapore cents on Friday.