CATALIST-LISTED LHN Ltd, a real estate management service provider, has inked a deal to buy the car park of Bukit Timah Shopping Centre for S$16.2 million, through a 40 per cent stake in a joint-venture (JV) company set up on Wednesday.

 

The leasehold property has 381 parking spaces, with a remaining tenure of 862 years.

 

LHN has been tapped to run the car park, which the group said would increase income sources and grow the number of car parks under its facilities management business. Its other main business segments involve space optimisation and logistics services.

 

The group is holding its stake in the JV company through its wholly-owned LHN Parking (GMT) subsidiary. Its partners are businessman Low See Ching' s GMTC vehicle, which also has a 40 per cent share, and SM Venture, with a 20 per cent interest. Mr Low is a third party who is also a shareholder in other joint ventures with LHN.

 

LHN most recently made headlines for its S$18.1 million purchase of a four-storey building in Balestier, which it plans to turn into a co-living space.

LHN Limited, through its indirect wholly-owned subsidiary Coliwoo Balestier, will buy a property in Balestier for S$18.1 million, which it intends to operate as a co-living space.

 

The four-storey corner building located at 320 Balestier Road has a total land area of approximately 406.7 sq m. The first floor is tenanted, while the second, third and fourth floors are vacant.

 

The seller is Crescent Developments Private Limited, a private company engaged in wholesale trade and real estate development.

 

LHN said on Wednesday that Coliwoo Balestier has paid a deposit of S$905,000. The remaining balance of about S$17.2 million plus goods and services tax will be paid when the deal is completed - expected to be three months from now.

 

The purchase will be funded by the group' s internal funds and bank borrowings.

 

The group said it plans to operate the property as a co-living space, noting that it is surrounded by international schools and universities, and near to Health City Novena, making it attractive to individuals studying or working nearby.

 

The property is also near the Novena, Toa Payoh and Boon Keng MRT stations.

 

LHN added that the purchase will expand its portfolio of properties under the co-living business in Singapore and increase the brand value of Coliwoo. It will also provide potential capital appreciation and opportunities to generate revenue.

 

On June 22, Fragrance Ltd acquired 1,852,600 shares of Catalist-listed LHN Group for a consideration of S$194,523. At an average price of 10.5 cents per share, this took Fragrance Ltd' s direct interest in the real estate management services group from 53.90 per cent to 54.36 per cent.

 

This also increased the deemed interests of siblings, LHN Group' s executive chairman and group managing director, Kelvin Lim Lung Tieng, and its executive director and group deputy managing director Jess Lim Bee Choo in LHN from 53.90 per cent to 54.36 per cent.

 

Mr Lim is primarily responsible for the business development and overall management of the group and oversees its investment activities, operations and marketing efforts.

 

Ms Lim is primarily responsible for the corporate development and overall administration for the group and oversees its finance, human resource, information systems and administration functions.

 

Back on May 3, LHN reported that its residential properties segment under the Space Optimisation Business registered yoy revenue growth of 294.2 per cent in H1 FY20 due to increase in revenue from the co-work co-live business at 31, Boon Lay Drive and the new serviced residence project in Myanmar.