Acccording to yesterday’s BT, LOW Keng Huat (Singapore), which last August acquired 15 commercial units and an apartment at Balestier Towers for nearly $77.4 million, yesterday exercised options to purchase the balance 36 units in the mixed-use development for slightly above $63.9 million.
Its 99 per cent owned subsidiary Newfort Alliance (Moulmein), which made the two sets of acquisitions, plans to redevelop the 29,986-sq-ft site into a mixed residential and commercial development. The site’s tenure is statutory land grant, which is akin to freehold tenure. Tan JingWen (Chen JingWen) holds the other one per cent of Newfort.
Low Keng Huat’s release did not give further details but under Master Plan 2014, the site is zoned for commercial and residential use with a 3.0 plot ratio (ratio of maximum gross floor area to land area).
Newfort’s total purchase price of about $141.3 million for Balestier Towers reflects a unit land price of about $1,570 per square foot of potential gross floor area before payment of any development charge to the authorities.
In its statement to Singapore Exchange yesterday, Low Keng Huat said the acquisition of the 36 balance units as well as subsequent redevelopment of the property will be financed by internal resources and/or borrowings from financial institutions. The acquisition is not expected to have a material financial impact on the group’s consolidated earnings and net tangible assets per share or earnings per share for the financial year ending Jan 31, 2015.