Second Chance Properties has granted an option to Sen Wan Timber (S) to acquire its tenanted retail unit at Block 190 Lorong 6 Toa Payoh for S$15.29 million in cash, the company said in a filing to SGX Friday.
Management viewed the unsolicited offer to acquire the property as a good opportunity, with plans to use the proceeds to reduce debt, the filing said.
“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 the sale price was above the valuation performed on the unit by Colliers International Consultancy & Valuation (Singapore) 31 August 2021.
The deal is expected to be completed on 17 August, subject to HDB and other approvals, the filing said.