LHN Limited is selling its stake in the company that owns 115 Geylang Road, for $25.8 million. 115 Geylang Road is where one of LHN’s hotels, Coliwoo Hotel Gay World, is located at. The property was one of the three co-living properties LHN Group put on the market for $120 million in October 2024. The group first acquired the property in 2021.
On May 21, LHN’s indirect wholly-owned subsidiary, Coliwoo Holdings, entered into a share sale and purchase agreement with CWL Properties, a company that is mainly engaged in real estate development activities. CWL Properties is 100%-owned by Chia Teo Meng.
According to LHN, an earnest deposit of $260,000 and a further deposit of $1.29 million have already been paid. The balance of $24.25 million will be paid by CWL Properties at the close of the transaction.
CWL Properties will pay an amount equivalent to the pro forma net asset value (NAV) of the target company at closing, which will take place around July 31. A post-closing adjustment to the consideration will be made in cash.
The consideration was determined after considering several factors, including the valuation of the property. An independent valuation by Knight Frank determined that the property was worth $25.8 million as at March 31. The valuer made comparisons with the sale of shophouses in the vicinity and other locations.
According to LHN, the disposal is a “good opportunity” for the group to realise its investment and secure more cash for future developments and investments.
As at 4.19pm, shares in LHN are trading 0.5 cents lower or 0.97% down at 51 cents.
