LHN 41O has agreed to buy GSM Building in a collective sale for $80 million, with an eye to convert some of the space in this commercial building along Middle Road into serviced apartments as part of its broader expansion into this market.
GSM was relaunched for collective sale in January this year, with a guide price of $85 million. The property was first put up for collective sale in August 2022, with an earlier attempt back in 2020 and an asking price of $98 million.
The property was marketed by Mount Everest Properties.
The property, at 141 Middle Road, has a total land area of 1,115.1 sqm with a tenure of 99 years commencing from May 2 1978.
The property consists of 33 units, of which 13 are self-occupied and 20 are rented out, respectively, as well as common property.
In a filing to the stock exchange on Feb 10, LHN says it intends to convert levels 3 to 6 of the building into serviced apartments.
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For levels 1 and 2, LHN shall retain the space for commercial use.
LHN will be applying to the Urban Redevelopment Authority for permission to make this change.
"The GSM acquisition will expand the group’s portfolio of residential and commercial properties under its space optimisation business in Singapore, increase the brand value of Coliwoo, provide potential capital appreciation to the group, and provide additional opportunities to generate revenue," says LHN.
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Coliwoo is a short term stay brand under LHN.
LHN shares closed at 30 cents on Feb 10, up 1.69%.
