Pei Fu Industrial Building, a freehold property along 23 New Industrial Road, has been acquired by Oxley Kyanite Pte, a subsidiary of SLB Development for S$76.25 million. This news was announced on Tuesday, April 24, by newly listed SLB.
The sales transaction, which was handled by William Gan Realty, saw the property go to SLB, which has a controlling share in Oxley Holdings.
The 6-storey property, which sits on an area 62,346 sq ft in size, was built in the 1980s, and it is used for light industrial work. The original developer, Tay Eu Chee Realty, owns 30 strata units.
The owners of Pei Fu had fixed their reserve price at S$75 million, and therefore the transaction has left them S$1.25 million richer than anticipated.
With the proposed gross floor area (GFA) being 155,864 sq ft, the sales price leads to a land rate of S$489 per sq ft per plot ratio (psf ppr).
However, there is a possibility that rate could rise when the development baseline is eventually ascertained.
According to SLB, which is part of Lian Beng’s construction division, the Pei Fu transaction will not impact the group’s balance sheet in any significant way this financial year that ends on May 31, 2018.
As at 3.19pm on the day of acquiring Pei Fu, SLB’s share price at the stock exchange was S$0.235, and that of Oxley was S$0.485.
The Lian Beng Group is one of the strongest companies in Asia, dealing in construction, manufacturing, engineering and leasing of machinery, property development and sale, and provision of property management services.
SLB says the funding of the Pei Fu redevelopment will come from its internal resources as well as external borrowing.
The company has already made an initial deposit of S$3.81 million, and it intends to make an equivalent payment when the relevant authorities give consent to the sale.
It will then pay the balance of the sales amount once all the legal processes of the sale have been completed.
The Sale Has 88.5% Shareholders’ Consent
So far, 88.5% of the shareholders at Pei Fu, in both strata area and shareholding value, have given their backing to the sale, and if the remaining unit owners do not accede to the sale, Oxley Kyanite would be entitled to a refund of any payments they have made as well as compensation for any damages incurred.