SLB to seek shareholder ratification for Thye Hong Centre purchase

SLB Development has completed its S$112.5 million acquisition of all the strata units and the common property in industrial building Thye Hong Centre at 2 Leng Kee Road.

The Catalist-listed property developer paid the remaining sum of close to S$106.9 million, representing 95 per cent of the purchase price, it said in a filing on Thursday after market close.

SLB will now seek shareholders' approval for the proposed acquisition by way of ratification at an extraordinary general meeting to be convened by March 17, 2021.

The company proposed the deal in September this year, a month after it had made an expression of interest to buy the development.

Located near Redhill MRT station, Thye Hong Centre is a freehold six-storey asset sitting on a 64,067 square foot site zoned for Business 1 use, or clean and light industrial use, with a 2.5 plot ratio.

SLB chief executive Matthew Ong told The Business Times recently that its medium-term plan is to collect rental income from Thye Hong Centre, although it will be exploring redevelopment possibilities.

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The industrial building's net lettable area (NLA) of 146,834 square feet is fully occupied, and the net yield on the purchase price is a high-3 per cent, Mr Ong said.

The company will squeeze out some additional NLA and spruce up the common areas and ground floor. It will also inject lifestyle elements such as a garden, gym and fitness corner on the rooftop.

SLB's parent, mainboard-listed construction firm Lian Beng Group, in September told shareholders that the acquisition is part of SLB's business expansion to replenish its land bank.

Shares of SLB rose 5 per cent or 0.5 Singapore cent to finish at 10.5 cents on Thursday. Lian Beng shares fell 1.2 per cent or 0.5 Singapore cent to end at 41 cents.

READ MORE: SLB moves beyond property development