The newly-formed JV has been granted the option to purchase (OTP) for the property, although the option has yet to be exercised. The filing adds that the JV partners intend to redevelop, which includes demolishing and rebuilding property into a strata-titled commercial building. The JV will market and sell the units in the open market and lease, run and, or operate the remaining unsold units for commercial usage business.
LHN Group will be the sole project management company in charge of the new JV business.
Ching Chiat Kwong, executive chairman and CEO of SGX-listed Oxley Holdings, has a 90% stake in JV Partner A while his son, Shawn Ching Wei Hung, executive director and group general manager of Oxley has the remaining 10% stake in the JV partner. As at Feb 14, JV Partner A is a substantial shareholder of Coliwoo (TK), an indirectly non-wholly owned subsidiary of LHN Limited. As such, the JV partner is a connected person to LHN Limited at the subsidiary level.
JV Partner B is a Singapore-incorporated investment holding company and is 50%-owned by Darren Low Jun Jie and Tan Hui Kang equally. Low is a lawyer while Tan is a doctor.
See also: City Developments announces divestment of South Beach stake, but should it be Mortlake instead?
The new JV is 58%-owned by JV Company A and 42%-owned by JV Partner B. JV Company A is 50%-owned by LHN Group and 50%-owned by the JV by Ching and his son. LHN Group and the Chings will pay a maximum contribution of $14.5 million each.
It's not the first time that LHN and the Chings have teamed up. Last year, LHN and the Chings acquired Wilmer Place at 50 Armenian Street for $26.5 million on Apr 9, followed by another deal on April 22, involving GSM Building at the corner of Middle Road and Waterloo Street.
Shares in LHN Limited closed flat at 53 cents on Feb 14.
