The Business Times | MARCH 27, 2013
Chip Eng Seng Corporation, through wholly owned CEL Property Investment, has agreed to buy San Centre - an office building along Chin Swee Road - for $113 million under a collective purchase.
The transaction price fell only slightly short of marketing agent Jones Lang LaSalle's $115-125 million estimate.
Raymond Chia, Chip Eng Seng group chief executive officer, said: "The purchase price for the property was arrived at after taking into account various commercial factors including the location of the property, the redevelopment potential and the recent transacted prices for properties in the vicinity."
He added that the purchase "will be financed by internal sources and bank borrowings".
In its announcement yesterday, Chip Eng Seng said that CEL Property Investment had entered an agreement with the owners of the property for the collective purchase of all units and that the purchase is subject to the approval of the Strata Titles Board.
If successful, CEL will own the 12-storey office building at 171 Chin Swee Road, a 28,719 sq ft plot with gross floor area of 131,895 sq ft. The leasehold property has a remaining term of 55 years.
On the site's redevelopment potential, Mr Chia said: "It could be redeveloped into a 20-storey commercial or mixed commercial and hotel development, subject to approval from the relevant authorities."
Chip Eng Seng shares closed trading yesterday at 78 cents.
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