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PROPERTY developer Heeton Holdings on Tuesday announced that its wholly owned subsidiary Heeton Estate has entered into an agreement involving the sale of The Woodgrove along Woodlands Avenue 1 for S$55.85 million.
With the proposed sale, the Singapore-based purchaser who was not named had paid a deposit of S$10,000 with a further S$5.575 million to be paid within three days from the date of agreement. The balance will be payable upon the completion of the proposed disposal.
The Woodgrove, which is on a leasehold term of 99 years, has an unexpired lease term of approximately 78 years and has a strata floor area of 5,144 sq m.
Based on a financial statement for its third-quarter earnings, the net asset value of the property was worth approximately S$33 million, with the net gain from the proposed disposal approximately S$22 million, Heeton Holdings said in an after-market filing with the Singapore Exchange.
Heeton Holdings also said costs of upgrading the property to compete with bigger malls would incur additional capital expenditure and result in a loss of income.
With the sale, the property developer intends to enhance its cash flow and direct resources to be used on potentially higher-yield investments such as the acquisition of potential development property and hospitality assets.
Shares of Heeton Holdings ended S$0.005 or 0.9 per cent up at S$0.545 on Tuesday.