Chip Eng Seng Corporation is acquiring a commercial property located at 80-82 Hindley Street in Adelaide, Australia for a purchase price of A$2.5 million ($2.6 million).
The property consists of a commercial building comprising two-storeys and a basement, with direct frontage towards Hindley Street. The property is situated on a freehold site and has a land size of approximately 287 square metres.
Currently, the property is fully tenanted and is occupied by two tenants under commercial leases which are expiring in September 2023 and November 2023 respectively. The leases also have options to renew for a further term ranging from two to three years.
The property adjoins commercial properties located at 72 and 74-78 Hindley Street which Chip Eng Seng had acquired in 2018, along with an adjoining hotel located at 121-125 North Terrace. All the properties, including the ones currently being acquired, collectively occupy a freehold site of over 4,000 square metres, which the group may consider for redevelopment.
In the meantime, Chip Eng Seng says the acquisition will allow the group to have increased frontage along Hindley Street, which will allow it to better manage the tenant mix along that street.
The acquisition is expected to complete by Jul 1.
The acquisition will be funded from Chip Eng Eng’s internal resources and is not expected to have a significant impact on the net tangible assets and earning per share for the FY2021 ending December.
Shares in Chip Eng Seng closed flat at 45.5 cents on June 9.
