SINGAPORE (Nov 22): UOL Group is acquiring KH KEA Building along North Bridge Road, which is located next to the company’s Odeon Towers, for $79.3 million.
Located next to Bras Basah Complex, the 9-storey commercial building sits on a land area of 435.2 sqm and has a net lettable area of around 22,075 sqft.
The property has a 999-year leasehold tenure, which started in April 1827.
UOL Group says it intends to explore the possible amalgamation of KH KEA Building and Odeon Towers as well as potential asset enhancement works.
“This acquisition allows us to potentially amalgamate the KH Kea site together with Odeon Towers to create a contiguous site with prime frontage of approximately 50 metres along North Bridge Road, with unobstructed views overlooking the iconic Raffles Hotel and towards the Marina Bay CBD area,” says Jesline Goh, UOL Group’s Chief Investment and Asset Officer.
“We are exploring potential asset enhancement works that will allow us to utilise the available GFA (gross floor area) for both sites to create a superior product with larger and more efficient floor plates,” she adds.
The acquisition, which will be financed via a combination of internal resources and external borrowings, is not expected to have a material impact on the group’s net tangible assets or earnings per share for the financial year ending Dec 31, 2019.
Shares in UOL Group closed 7 cents higher, or up 0.9%, at $7.79 on Friday.
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