Chip Eng Seng has entered a deal to sell its shophouse property located at 157, 159 and 161 Geylang Road to an unrelated party for S$8.63 million, the company said in a filing to SGX late Friday.
The property is a part two-storey, part four-storey corner commercial shophouse, occupying around 2,990 square feet, Chip Eng Seng said, adding it had acquired the property in 1993 as an investment property.
“The group’s shophouse properties in Singapore do not contribute significantly to the group’s revenue and profitability as a whole. The group has therefore undertaken an exercise to dispose its shophouse properties in Singapore,” Chip Eng Seng said. “The property is the group’s remaining shophouse property in Singapore. The proposed disposal is in line with the group’s asset management strategy to divest non-strategic or non-core assets.”
The property, located near the Kallang MRT stop, was put on the market in 2015 with a guide price of S$10.8 million, according to a Straits Times article at the time.
The company said it has completed the disposal of its shophouse property located at 115 Geylang Road, and the disposal of its shophouse properties on Tanjong Pagar Road is expected to be completed in December.
The purchase price is higher than the independent valuation of the property at end-December, which was not commissioned for the sale, Chip Eng Seng said.
The deal for the 157, 159 and 161 Geylang shophouse provides the purchaser an option to purchase for the fee of S$86,300, or 1 percent of the purchase price, which has been paid to Chip Eng Seng’s subsidiary CES Capital, the filing said. If the purchaser doesn’t exercise the option on or before 3 September, the fee will be forfeited, the filing said.