SINGAPORE - Watch retailer Cortina Holdings has agreed to sell two vacant commercial units at The Adelphi for $6.5 million.
The strata-titled units on the fifth floor of the 999-year lease building are being sold to a wholesaler of cosmetics and toiletries owned by two individuals, Cheng Yeou Jian and Zhang Yanhua.
The Adelphi, which stands at the corner of North Bridge Road and Coleman Street, comprises a five-storey retail podium and a six-storey office block with four levels of basement parking.
The price tag is about 7 per cent and 12 per cent below the valuation by Colliers and DTZ respectively.
However, it is 25 per cent above Cortina's book value as of Sept 30.
The board the considered the deal as the most favourable it can get after taking into account all relevant considerations, including the potential cost savings from an immediate sale against delaying it in the hope of an improved offer at a later date.
The sale will reduce Cortina's bank borrowings and strengthen its working capital so as to better position the group to take advantage of new business opportunities.