UPDATE: Lum Chang subsidiary enters deal to sell London serviced residences

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This item was originally published on Saturday, 25 September 2021 at 13:56 SGT; it has since been updated to include Lum Chang’s statement on the reason the property was sold for less than its carrying value. 

Lum Chang Holdings’ 70 percent-owned subsidiary Wembley Properties has entered a deal to sell its recently completed serviced residence block in London, United Kingdom, to Crosstree Co-Living Holdings for around 28.87 million British pounds, or around S$53.12 million, in cash, the company said in a filing to SGX Saturday.

That marks a discount to the property’s carrying value for accounting purposes, which was 52.50 million pounds, and the agreed property value of 54.50 million pounds, according to the statement.

On Monday, a representative of Lum Chang told Shenton Wire the consideration was based on the net value of Wembley Properties, the U.K. subsidiary holding the property. The bank loan attached to the property will be settled separately by the buyer, she said via email.

“The transaction marks an opportunity for the company to realize its investment in the property and the company’s share of the proceeds will be used to partly fund future investments of the company,” Lum Chang said in the statement.

The estimated net gain of the sale is expected to be around S$850,000, with Lum Chang’s 70 percent share coming in at around S$600,000, the filing said.

The 11-storey, 300 room property is located at Kelaty House, First Way, Wembley, in London, and it has leasehold rights to an ancillary 45-lot car park in the basement, the filing said.

Wembley Properties is 70 percent owned by Lum Chang, with the remainder held by Sin Heng Chan, the filing said.

Singapore-listed Lum Chang Holdings is a property developer and investor, with a portfolio including residential and commercial projects, hotels and resorts.