Hwa Hong units complete acquistion, disposal of London properties

SINGAPORE - A wholly owned subsidiary of Hwa Hong Corporation said on Tuesday (April 24) it has acquired the remaining 30 per cent interest in a freehold commercial property in London.

The investment holding company said that Vantagepro Investment had bought the remaining interest of the property, 20 Midtown, from Eagle House LLC, Langland Estates and other unrelated parties.

Previously, Vantagepro held 70 per cent of the total and issued paid-up share capital of Capital Eagle Limited and a 70 per cent share in the equitable estate of 20 Midtown.

Capital Eagle holds the 20 Midtown property on trust for Vantagepro which stood at 70 per cent, while Eagle House owned 20 per cent, and Langland and the other unrelated parties owned 10 per cent.

Post-acquisition, Capital Eagle is now a wholly owned subsidiary of Hwa Hong.

The deal is worth about £10.4 million (S$19.1 million). It will be funded by the group's internal cash resources.

The 20 Midtown property has a total floor area of about 30,533 sq ft and comprises five floors of office accommodation and street level retail shops.

Hwa Hong also said on Tuesday that its other wholly owned subsidiary, Singapore Warehouse Company, had on Monday disposed of its 50 per cent interest in a freehold commercial property known as Herbal Hill that is also located in London, to Eagle House.

The disposal amounts to about £7 million.

"The 20 Midtown property acquisition and Herbal Hill disposal allow the group to consolidate its interest in its income producing properties in London, realise gains from its investment in the Herbal Hill property, and reinvest the proceeds from the Herbal Hill property disposal into a newly refurbished income producing asset," Hwa Hong said.

The group expects to realise about S$6.6 million in gains for the second quarter ending June 30, 2018, from the transactions.

Hwa Hong last traded at 32.5 cents on April 19.