Hot stock: Hiap Hoe shares rise 6%; company owns units at Orchard Towers

SHARES of Hiap Hoe 5JK rose 6 per cent in early morning trade on Friday, after the company revealed in a regulatory filing after the market closed on Thursday that it owns 59 strata lots in Orchard Towers via its subsidiary, Golden Bay Realty.

As at 9.01am, the mainboard-listed company's shares rose by 6.1 per cent or 4 Singapore cents to 69.5 cents after 61,100 shares changed hands.

Shares later eased to 67.5 cents, up 3.1 per cent or 2 cents as at 9.31am.

No married deals were recorded in early morning trade, according to ShareInvestor data.

In its regulatory filing, the company said that its subsidiary is the registered proprietor of 59 strata lots at Orchard Towers, 21 of which are shops and 38 are offices.

The filing came after news broke that Edmund Tie has been named marketing consultant for the potential collective sale of Orchard Towers, while Legal Solutions LLC is the appointed law firm.

In a letter dated Aug 17 and seen by The Business Times, Orchard Towers' collective sales committee informed owners about the two appointments and has begun discussing the method of apportionment of the collective sale proceeds with the advice of both firms.

At least 80 per cent of the owners will have to consent before an en bloc tender can be launched.

In its filing, Hiap Hoe also noted that there is no certainty the collective sale of the mixed-use development will proceed or be completed, and that it will provide further material updates at the appropriate time.

READ MORE:

• Orchard Towers collective sale committee appoints Edmund Tie, Legal Solutions
• Ageing buildings take another crack at going en bloc