Second Change Properties to divest Toa Payoh retail unit

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Second Chance Properties has entered a deal to divest the retail property at Block 190 Lorong 6 Toa Payoh unit 01-562, Singapore, to Lim Hock Seng Danny for S$11.25 million, the company said in a filing to SGX Thursday.

“In recent years, there has been an increasing trend of family shoppers and others, visiting shopping malls instead of shopping at individual retail units in the heartland (as these malls, apart from air conditioning and other creature comforts also offer other attractions),” Second Chance Properties said.

“Furthermore the popularity of online shopping continue to have a dampening effect on retail property value. This has led to downward pressure on rentals and had a negative impact on our unit,” the company said.

With a balance lease of 49 years on the property, the value of the unit is expected to decline ahead, the company said.

The offer for the unit was unsolicited, Second Chance Properties said.

The sale price is S$250,000 above the valuation performed by Colliers International Consultancy & Valuation (Singapore) on 31 August 2021, the filing said.

The deal is expected to be completed on 26 July, the filing said.