The GSM Building at Middle Road has been acquired by Coliwoo (TK), an indirect fully owned subsidiary of Singapore-listed LHN, through a collective sale for S$80 million

GSM Building Sold En Bloc to LHN Unit Coliwoo For S$80 million

Only 2 Months Passed, Three Properties Have Already Been Sold Collectively in The New Year

The GSM Building at Middle Road has been acquired by Coliwoo (TK), an indirect fully owned subsidiary of Singapore-listed LHN, through a collective sale for S$80 million, which excludes the goods and services tax (GST), the firm said on Friday (Feb 10).

According to LHN, which does business in real estate, facilities management, and logistics, the sum—less S$100,000 in tender fees—is anticipated to be paid via internal finance sources and bank borrowings.

The GSM vendors will get their share of the S$80 million consideration based on an “apportionment ratio” specified in the collective sale agreement.

The sum was determined via a public bidding process after independent valuer Colliers International’s indicative valuation was taken into account.

According to the company, Colliers valued the property at S$80 million as of February 1.

The potential of the GSM property, as well as the worth and current market values of other properties “of a similar sort” nearby, were also taken into consideration.

For the planning and use of the prime site, the first and second floors of the building will continue to be used for business purposes by LHN, while the third through sixth floors will be converted into serviced apartments.

LHN said that it would “as soon as possible” file an application to the Urban Redevelopment Authority for the change of use of these levels.

They said that by making this purchase, it will be able to add to its portfolio of residential and commercial buildings in Singapore that are managed by its space optimization company.

LHN Group added that the purchase will also give Coliwoo more options to raise its revenues, provide for possible capital appreciation, and enhance its brand value.

Fragrance Limited, one of the LHN’s main shareholder, has a 54 percent ownership stake in the company.

LHN held a general meeting to approve the transaction after receiving formal consent from Fragrance. LHN announced that, as a result, it would not call a shareholders’ meeting to ratify the transaction.

The firm said that a circular, including more information on the purchase, among other things, is anticipated to be sent to shareholders on or before March 3.

GSM Building Sale Site Information

The GSM Building is located at 141 Middle Road in prime District 7 of Singapore.

The GSM Building has a 99-year lease that began on May 2, 1978, and its entire land size is 12,003 sq ft and is designated for commercial use.

As of February 10, the property has 33 apartments, including common property, 20 of which are leased out, and 13 of which are self-occupied.

The Bugis Station Interchange (which serves the East-West Line and Downtown Line), the Bras Basah Station (which serves the Circle Line), and the Bencoolen Station are all within walking distance of the GSM Building and can be reached in less than five minutes.

The enbloc site is close to places like Bugis Junction, Bugis+, Sim Lim Square, Bugis Village, Raffles Hospital, and the Singapore Art Museum that offer shopping, entertainment, and health care.

There are many alternatives for hotels and shared apartments in the neighborhood, including the Mercure Hotel, the InterContinental Hotel, and the JW Marriott Hotel.

GSM Building En Bloc All Details

  • Status: SOLD

  • Tenure: 99-year Leasehold

  • Land Size: 12,003 sq ft

  • Total Units: 33

  • Plot Ratio: 4.2

  • Nearby MRTs: Bencoolen, Bras Basah & Bugis

  • Address: 141 Middle Road

  • District: 7

  • Marketing Agent: Mount Everest Properties

  • Reserve Price: S$85 million

  • Sale Price: S$80 million

  • Date of Sale: February, 2023

  • Buyer: LHN Group