The option was granted through TA Corporation’s wholly-owned subsidiary Sino Holdings.
The joint purchasers have exercised the option on Oct 27.
The consideration amount was paid in cash
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The property is a unit in the freehold Leonie Hill Residences, which was developed by the group in 2005.
The unit was retained by the group for investment purposes. It has a gross area of 260 sqm ($2,798.62 sq ft).
The property is currently leased by Sino Holdings to an unrelated third party. The property will be sold subject to its existing tenancy.
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Based on the group’s 1HFY2021 financial statements ended June, the property’s net tangible assets (NTA) and book value stands at $5.2 million.
After the receipt of net proceeds of $4.8 million, TA Corporation says it will book a loss of around $0.3 million upon the completion of the disposal.
Despite the loss, the group says the disposal will realise the value of the property. The disposal will also improve the liquidity and reduce the borrowings of the group.
Net proceeds from the disposal will go towards an outstanding credit facility previously granted by a Singapore bank.
The sale and purchase of the property will be completed on Mar 31, 2022.
Shares in TA Corp closed flat at 6.4 cents on Oct 29.
Photo: TA Corp
