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SLB Development to acquire Thye Hong Centre for S$112.5m
PROPERTY developer SLB Development said on Thursday that it has entered into a sale and purchase agreement with Thye Hong Manufacturing for the acquisition of Thye Hong Centre at 2 Leng Kee Road, a freehold six-storey industrial building for S$112.5 million, exclusive of goods and services tax.
SLB Development had on Aug 25 made an expression of interest to purchase the development.
The development has a land area of approximately 5,952 sq m, which is held on trust by the vendor for Thye Hong Properties.
The purchase price takes into account the market value of the development and the group's assessment of the redevelopment potential of the development, said SLB Development in a filing. The group had also obtained an indicative value from an independent valuer which supports the value of the purchase price.
The group said that this move is in line with its long-term growth strategy to expand its business through the purchase and development of quality properties. The group intends to redevelop the land on which the development is situated, and does not intend to keep the development for long-term rental income.
The proposed acquisition is expected to be completed on Dec 17, 2020, three months after the agreement date.
The group added that the proposed acquisition will be funded using long-term bank borrowings and internal funds.