The 30-unit condominium at Grange Road was sold to private investors. Source: Mercurio Design Lab
Property developer Heeton Holdings has sold its entire stake in the 16-storey iLiv@Grange condominium project.
In an SGX filing last week, the company revealed that the disposal was made through a sale of the entire issued and paid-up capital of Heeton Residence to private investors who are not related to the company, its controlling shareholders and directors.
Heeton Residence is the sole shareholder of Heeton Realty, which owns iLiv@Grange at 74 Grange Road.
The consideration for the disposal comprised a nominal amount of $4 for the purchase of the sale shares and $21 million for the transfer of the shareholder’s loan owing from Heeton Residence to Heeton.
As part of the transaction, Heeton also subscribed for $4 million senior notes in Heeton Realty due by 2019, which bears interest at five percent per annum.
The consideration was arrived at on a willing-buyer, willing-seller basis after taking into account the adjusted net asset value of Heeton Residence and Heeton Realty, including the agreed value of iLiv@Grange at $95 million.
“The residential property market is not recovering due to various factors, including property cooling measures, supply of new units to the market and the general macro-economic conditions,” said Heeton.
“Given current market conditions, the consideration offered by the purchasers for Heeton Residence seemed reasonable and offered a viable exit option for the company.”
Heeton expects the disposal to have a negative impact on its earnings, but not on the group’s net tangible assets per share for the current financial year.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
