SWEE Hong has agreed to sell a freehold property at 190A and 190C Choa Chu Kang Avenue 1 for S$3.1 million to a privately held firm run by one of its employees, it said in a Singapore Exchange filing on Tuesday.

The property will be sold to Hong Ee Corporation. The directors of Hong Ee as at Dec 27 are Ong Kheng Keong, who is a site coordinator at Swee Hong, and Ong Keng Huat.

The property is made up of two strata-titled units situated one on top of the other, "forming an intermediate unit", Swee Hong said. A valuation on Dec 12, 2016, by consultancy Jones Lang LaSalle valued the property at S$3.1 million, it added.

It said it would book a gain of S$2.6 million on the sale and net proceeds of about S$2.9 million, and that it plans to use 80 per cent of the net proceeds to repay creditors.