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".

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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.