Lian Beng Group has entered a deal to acquire Food Empire Holdings‘ subsidiary, Food Empire Real Estates, which owns an 11-storey industrial property at 31 Harrison Road in Singapore, according to a filing to SGX Thursday.
“The group views the proposed acquisition as a good opportunity to participate in a strategic investment of the property, where the group can derive rental returns,” Lian Beng said.
The consideration, which will be the adjusted net asset value (NAV) on the deal’s completion date, will take into account the property value of S$49.25 million, Lian Beng said. Lian Beng said it would fund the deal via bank borrowings and/or internal resources.
Food Empire said the property is currently being held as an investment property, with the latest valuation from November 2021 valuing the asset at S$51.5 million.
Food Empire said the disposal is part of its efforts to rationalize its businesses.
“The property is considered to be non-core to the group and has appreciated in value over the years. The company believes that the proposed disposal is a good way to unlock value,” Food Empire said, adding the proceeds would be used to explore strategic and commercial business opportunities.