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.
See also: CapitaLand Development and UOL granted green light to acquire Thomson View property
As at 4.19pm, shares in LHN are trading 0.5 cents lower or 0.97% down at 51 cents.
