Phoenix Heights is situated along 71-78 Phoenix Avenue. The construction work of the property ended in 1996. It had a lease of ninety-nine years which is expected to expire in fifty years. However, USB has a plan of applying for another lease of ninety nine years and also has a plan of redeveloping the asset after the renewal of the lease by the authority. Phoenix Heights was meant to be used as a residential property. Its size is about 42,570 square feet and a maximum of 5,560.66 square meters floor area. The property has thirty two units in total.
Phoenix Heights 71 Phoenix Avenue
The tender was won by OKP Holdings’ associate. The news was released by the company that deals with construction engineering and listed at the mainboard. USB Holdings Ltd gave about USD 3.1 million as the bid price for the asset for a period of ninety nine years. OKP announced that this was possible due to the prevailing conditions of the market and the prices of such properties in the market. The sources of funds for the purchase of shares was expected to be either from internal finance by use of the group’s resources or external sources in the form of a bank loan. The company was not expecting any material impact on the net assets of the company that are tangible for every share, and on the company’s returns on every share for the year ending 31st December 2018.
Phoenix Heights OKP Holdings Bukit Panjang
Other companies that held a 25% stake in USB included; Ho Lee Group; Chye Joo Construction Investment; and Hwa Seng Group’s HSB Holdings according to the filing that was done on 2nd July 2018. The tender had received a deposit of USD 180,000 as down payment while the remaining 10% of the price for the purchase would be paid within fourteen days of the transaction. According to Ann Tan, who was the director of the senior division of ERA Realty, appropriate measures were put in place before the deal was closed.
Phoenix Heights Enbloc Tender
In conclusion, the win of the Phoenix Heights Enbloc tender by OKP Holding’s associate was remarkable and one of its kind. The bid price for En bloc of USD 33.1 million by OKP Holdings indicates that the property was prime and appropriate for business. It also shows that there must be high expected returns for the business. The deal was prime and worthwhile.