SINGAPORE - Mainboard-listed Lum Chang said on Monday (Aug 17) that it has signed an agreement with UKI (Wembley) Limited to buy Kelaty House, a freehold commercial property in Wembley, northwest London, for £25.5 million (S$55.6 million).
The property is located near the iconic Wembley Stadium within the Wembley Regeneration Area that is rapidly transforming into a vibrant and dynamic neighbourhood.
The property is about 1.03 hectares and is currently fully leased. It has existing planning consent from the authorities to be redeveloped into a mixed-use development. Lum Chang said it is now reviewing its options and will make a decision on what to do with the building in due course.
It added that the acquisition presents a prime investment opportunity to expand the group's property portfolio in the UK. It is also expected to provide a rental income stream to the group in the short term.
The consideration is to be initially funded by the group's internal cash resources, but the group may explore external debt financing in the future, it said.
The acquisition is expected to be completed by about Aug 28, 2015.