OEL Holdings, formerly known as Oakwell Engineering, said on Thursday that it entered into an agreement on Jan 13 to purchase two property investment companies for $53.9 million.

The companies, Singapore Service Residence and Expats Residences, are held by a unit of Heng Fai Enterprises, which is listed on the Hong Kong Stock Exchange.

Each one of them holds direct stakes in various residential and commercial property units here.

The combined book value of the net assets of both companies stood at $42 million as of March 31 last year.

OEL will pay for the acquisition through $10 million in cash and issue convertible bonds to Corporate Space, Heng Fai's unit, for the remaining $43.9 million.

Proceeds from the disposal of OEL's distribution business announced last year will fund the cash payment.

OEL lifted its trading halt on Thursday morning after releasing the announcement.