Heeton to sell The Woodgrove for $55.9 mil

By EdgeProp Singapore / The Edge Singapore | December 6, 2017 3:34 PM SGT
Join our  Telegram  channel and follow our  Facebook  for the latest update.
SINGAPORE (Dec 6): Heeton Estate, a wholly-owned subsidiary of Heeton Holdings, has agreed to sell development at 30 Woodlands Avenue 1, The Woodgrove, for $55.85 million to an undisclosed purchaser registered in Singapore.
Heeton expects to book $22 million in net gain from the transaction, which it intends to use for the acquisition of potential development property and/or hospitality assets in future.
The property, valued by Colliers International at $56 million, has a strata floor area of 5144 sq m, with an unexpired lease term of approximately 78 years based on its leasehold term of 99 years commencing from 26 June, 1996.
In a Tuesday announcement, Heeton says the sale of The Woodgrove is an opportunity for the group to realise its investment in the property, as it would have to be upgraded and renovated in order to compete with bigger retail malls in the area due to the building’s age.
This would incur additional capital expenditure for the group, says Heeton, as well as a loss of income.
Assuming the disposal had been completed in end 2016, the group estimates it would have registered a net tangible assets (NTA) per share of $113.6 compared to a NTA per share of $105.74 before the proposed disposal, while earnings per share (EPS) would have been 10.95 cents rather than 3.84 cents if the transaction was completed on Jan 1, 2016.
Shares in Heeton closed 0.93% higher at 54 cents on Tuesday.

Follow Us
Follow our channels to receive property news updates 24/7 round the clock.
EdgeProp Telegram
EdgeProp Facebook
Subscribe to our newsletter