Property developer Sim Lian Group, through its unit Geo-Tele, has put up its property at 9 Tai Seng Drive for sale to Sabana Investment Partners (SIP) for about S$46.3 million.
The company said the asking price represents a premium of 78-percent over the book value and presents an attractive opportunity for it to dispose of the asset.
In order to sell the property, the company will require the approval of JTC Corporation, which issued the property to Sim Lian.
The property will be acquired by SIP’s REIT manager, Sabana Real Estate Investment Management, which plans to list its units through a proposed initial public offering on the SGX.
Since this is an Islamic-based REIT, approval will also be needed from a Sharia’a Council to make sure that the future businesses on the real estate are Sharia-compliant.
Geo-Tele, Sim Lian’s subsidiary, is also obliged to give a S$6.3-million rental income support for a period of five years from the date of completion.
The group stands to accumulate S$13.3 million upon disposal of the property, said Sim Lian.
The profits from the sale will help the company organize its financial resources more efficiently.