Sinarmas Land sells London property for £72m

MAINBOARD-LISTED Sinarmas Land has sold a freehold office and residential property in London for a cash consideration of £72 million (S$131.8 million), it said on Wednesday.

The property - Unlimited House, located at 10 Great Pulteney Street - was owned by Sinarmas' wholly-owned subsidiary SML Great. The freehold property provides 44,116 square feet of Grade-A office space and a self-contained five-unit residential block of 2,928 square feet.

Assuming that the disposal had been effected last Dec 31, and based on the consideration and pro forma net asset value of £56.5 million, the group would have recorded a gain on disposal of approximately £15.6 million, Sinarmas said.

Net tangible assets per share would have increased from S$1.02 to S$1.03, Sinarmas added.

The consideration was arrived at on a willing-buyer, willing-seller basis, and took into account the recent transaction prices of similar properties in the same location. Sinarmas added that the buyer had also undertaken its own valuation by a professional valuation firm.

It said the disposal - at this juncture of capital appreciation of properties in the same area - provided it with an opportunity to realise an "attractive rate of return on its investment".

The group intends to apply the net proceeds for repayment of bank loan on the property, working capital, and/or for future acquisitions of investments or development properties.

Sinarmas shares closed unchanged at 24.5 Singapore cents on Wednesday, before the announcement.