This item was originally published on Monday, 4 October 2021 at 1:37 a.m. SGT; it has since been updated with LHN’s response to a Shenton Wire query on Lim Hock San.
LHN Group has entered a joint venture deal with Way Assets and Lim Hock San for the acquisition of the Tuas South property, the company said in a filing to SGX Sunday.
“The strategic cooperation with Way Assets and Mr. Lim provides the group with opportunities to collaborate with accredited investors who are interested and confident in our business model and wished to participate with us in the Tuas South Property project,” LHN said in the statement.
Under the deal, LHN Group holds 60 percent of the joint venture, while Way Assets and Lim Hock San each hold 20 percent, the filing said.
In mid-July, LHN said its indirect wholly owned subsidiary Chrysolite Industries entered a deal to acquire the Tuas South property, located at 55 Tuas South Avenue 1 in Singapore, for S$21 million from DBS Bank, as the mortgagee exercising its power of sale over a foreclosed property. On Sunday, LHN said the acquisition of the property was completed on Friday.
The property has a remaining lease of around 39 years; it has an 11-storey industrial building with a basement carpark, a part single-storey industrial factory and a part single-storey industrial factor with two storey workers’ dormitory.
LHN said in a second filing to SGX Sunday that the purchase price was paid via a combination of bank borrowings and internal resources of the joint venture company, which was funded by its shareholders.
A filing earlier Sunday had said the purchase price of the property will be financed via third-party financing, and if that wasn’t sufficient, the shortfall will be financed by the joint venture’s shareholders. The maximum financial contribution — including consideration for buying into the joint venture, guarantees for third-party financing and shareholders’ loans to the joint venture — from LHN is S$21 million, while Way Assets and Lim each have maximum contributions of S$7 million, the earlier filing had said.
The joint venture has been set up solely to acquire and own the Tuas South property, and to operate it, the filing said, adding the property would be operated under the LHN Group brand.
LHN is a real estate management services group with three main businesses: space optimisation, facilities management and logistics services. The group operates mainly in Singapore, Indonesia, Thailand, Myanmar, Hong Kong, Malaysia and Cambodia. The company launched the GreenHub brand of suited offices, with four locations in Singapore as well as providing the brand in Jakarta, Indonesia.
Way Assets, incorporated in Singapore in 2016, is an investment holding company for a Singapore-based single-family office, which has a portfolio including real estate, equities, investee companies and funds.
LHN said Lim is experienced in the real estate business and has been on the boards of publicly listed companies.
In an emailed response to a query from Shenton Wire, the company declined to provide further biographical information about Lim.