SINGAPORE (Dec 22): Heeton Holdings has been granted a waiver by the Singapore Exchange (SGX) from obtaining shareholder approval to sell its property, The Woodgrove.

As such, the transaction will proceed without an EGM.

In a filing after the market closed on Thursday, the group says it applied for the waiver based on the grounds that no material risk profile of the company would arise from the sale of The Woodgrove, as it is a non-core asset of the group.

This is because the property’s rental yield is currently not a significant contributor to Heeton’s profit, nor it is it critical to the business of the group, as the property currently has low rental returns and yield, explains Heeton.

Noting the challenging retail market in Singapore, the group adds that leasing of The Woodgrove currently faces competition in its area, given the larger retail malls nearby.

Heeton highlights that The Woodgrove is but a small part of the group’s investment portfolio, and that the sale of the property would be an opportunity for it to realise its investment.

The group however cautions that the sale would incur additional capital expenditure to result in a loss of income, but would at the same time allow the group to enhance its cash flows and the group’s resources, to be deployed for potentially higher-yield investments in future.

This story, written by Michelle Zhu for The Edge Singapore, first appeared on Dec 22.