The 49-year old Phoenix Heights property has finally been sold to a company known as USB Holdings at a staggering price of $33.1 million. The buyer, who is a subsidiary of OKP Holdings, a Singapore-listed infrastructure and civil engineering company, will now add another 32-condominum unit property to its net assets. It goes without saying that the property, which is located in Phoenix Avenue, Bukit Panang is a 99-year leasehold asset that is, however, intended for residential use only.
Phoenix Heights Enbloc by OKP Holdings
Completed in 1969, the Phoenix Heights has exhausted almost half of its leasehold with about 50 years remaining to fully exhaust the leasehold. However, that should be a major issue as the buyer intends to renew the leasehold afresh in order to enjoy the entire lease years before expiry. Nonetheless, it looks forward to redeveloping the property once the relevant authorities issue an approval.
According to the company that conducted the selling process on behalf of the developer, the S$33.1 million price tag was arrived at after taking the prevailing market conditions as well as market prices of properties in the surrounding area into consideration.
Phoenix Heights Enbloc Acquisition
When it comes to size, the property covers a total area of 42750 sq feet with a maximum height of 5 storeys with 5,560.66 sq meters as the maximum allowable gross floor area. It is important to note that, even though the company has not settled the full price yet, it has already made a tender deposit of S$180,000 and pledged to pay 10 per cent of the purchase price within 14 days.
Phoenix Heights plans to raise the purchase price through bank borrowings and exploiting its internal resources. Though the acquisition is going to subtract a significant portion from the company’s revenues, it is however not expected to have a substantial impact on the net tangible assets per share or earnings per share for the year ending on Dec 31.
OKP Holdings USB Holdings
Funding should not be such a major challenge, after all, the buyer is associated with several major companies both worth millions of dollars in terms of revenues. For instance, besides OKP Holdings, USB Holdings is also owned by several other companies, which include B&D Investment and Property, Ho Lee Group, and HSB Holdings with each having a 25 per cent stake in the subsidiary.