Co-living space operator LHN plans to spend $14.5 million to buy 99 Rangoon Road, and convert the property into a student hostel, extending its spate of acquisitions.
"Once the Rangoon Road property commences operations, it will expand the group’s portfolio of properties under the residential segment in Singapore, provide potential capital appreciation to the group and provide additional opportunities to generate revenue," says LHN, whose executive chairman is Kelvin Lim.
The property, with a total land area of 242.6 sqm, is now held by Rangoon 99 Pte Ltd, owned by one Goh Lik Tuan. It is now leased out at $34,000 a month.
According to LHN, no information on the book value nor the net profits (both before and after taxation and extraordinary items) attributable to the property is made available by Rangoon 99 as it acquiring the property and not the business of the vendor nor the holding company of the property.
LHN closed Aug 7 at 35 cents, down 2.78% for the day and up 9.37% year to date.
