Straco's office units in International Plaza, set for collective sale, valued above book

TOURISM attractions operator Straco Corp has received a notice from the collective sale committee (CSC) of International Plaza Singapore, where the company owns two office units.

In a bourse filing on Wednesday, Straco said that the units, which are for its own use, span about 4,218 square feet in total.

The indicative independent third-party market valuation of the two units was around S$7.5 million, based on the information memorandum prepared by the CSC for illustrative purposes.

That is roughly quadruple the two units' total carrying value of close to S$1.9 million in Straco's unaudited financial statements for the half year ended June 30, 2021.

Straco, which operates the Singapore Flyer, said it received the collective sale notice on Aug 6. The notice stated that as at July 7, owners of 791 units out of 962 units, representing 80.33 per cent of the total share value and 83.58 per cent of the total strata area in the development, have signed the collective sale agreement.

The 50-storey International Plaza will soon be put on the market in what may potentially be Singapore's largest collective sale in history, in terms of the number of units and value, Edmund Tie & Company said last Friday.

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Another Singapore-listed company, A-Sonic Aerospace, said this week that it has office units in the building. The CSC's information memorandum stated that A-Sonic's 3,810 square feet of office space there was valued at about S$6.6 million and may fetch approximate gross sales proceeds of S$9.3 million.

Shares in Straco fell 1 per cent or 0.5 Singapore cent to finish Wednesday at 51.5 cents, before its announcement.

READ MORE: International Plaza to launch en bloc tender soon; multi-billion dollar tag would be Singapore's biggest collective sale