The acquisition of Pei Fu Industrial Building is final for $76.25 million. Oxley Kyarite Pte bought the freehold property, with a strategic location along 23 New Industrial Road.
The SLB Development subsidiary confirmed the collective sale for its April 24, Tuesday announcement.
William Gan Realty handled the sales deal, making sure that the property acquisition is final for SLB, the same company that controls the share in Oxley Holdings.
The construction of Pei Fu Industrial Building was in the 1980s, specifically for the purpose of light industrial operations.
It is a 6–storey property, documenting an area size of 62,346 sq ft. Tay Eu Chee Realty is the original developer of the building, which is also the current owner of 30 strata units.
Pei Fu owners decided on a fixed reserve price of S$75 million.
However, the transaction added S$1.25 million on top of their anticipated asking price.
The sales price closed at $489 per sq ft per plot ratio for the land rate. The proposed GFA or gross floor area, on the other hand, is 155,865 sq ft. The rate could possibly increase especially when the development baseline is determined.
SLB is a part of the construction division of Lian Beng. The company confirmed that the Pei Fu deal would not affect the balance sheet of the group significantly for the current financial year.
The Lian Beng Group is a prominent key player in various industries particularly construction, leasing of machinery, manufacturing, engineering, provision of property management services, and property sale and development.
It is highly regarded as one of Asia’s strongest companies in its covered niches.
The Pei Fu redevelopment funding will be from external borrowing and internal resources, according to SLB. The group initialized the project through depositing an initial amount of S$3.81 million, intending an equivalent payment with sale consent from relevant authorities.
SLB will work on the payment of the sales amount balance as soon as the legal proceedings are complete.
Acquisition Gained 88.5% Consent from Shareholders
Pei Fu shareholders, specifically 88.5% of them in both shareholding value and strata area, have already given their consent and support to the sale. Oxley Kyanite will refund any payments they made and compensate for incurred damages, in case the remaining unit owners will not approve the sale.