UOL Group plans to sell the KINEX mall for $375 million, in another key divestment move by the property and hospitality company.
The buyers are two entities Kinex Times Square and Xiaohong Property Management.
"The proposed divestment provides an opportunity for the group to unlock the value of its investment in KINEX, and is part of the group’s reconstitution of its overall property portfolio," says UOL.
The property is carried on UOL's books at $370,005,000, and is last valued by Edmund Tie & Company (SEA) for $370 million.
In its 1HFY2025 ended June, the property generated net profit of just over $3.1 million for UOL, which expects to book a gain on divestment of around $2.4 million.
Back in July 2023, UOL sold its long-held Parkroyal Kitchener Hotel to Worldwide Hotels Group for $525 million, booking a gain of $446.2 million.
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KINEX, a freehold property located at 11 Tanjong Katong Road, has a total net lettable area of 204,223 sq ft taken up by the three-storey retail podium and a basement. In addition, there are residential units above the mall.
The parties aim to complete the transaction on Oct 31.
According to UOL, the net proceeds of the divestment will give it greater financial flexibility to repay existing debts, and/or to finance any capital expenditure, asset enhancement works, investments and general corporate and working capital requirements.
UOL shares closed at $7.40 on Sept 10, down 1.99% for the day but up 43.41% year to date.
