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Mon, 02 Jul 2018 – 19:06
CONSTRUCTION and real estate company Chip Eng Seng Corp. has signed an agreement for a vacant building in Australia, which she plans to turn into a hotel. 19659003] He will pay A $ 14.5 million (US $ 14.6 million) for the 1,283-square-meter self-service site in Adelaide, with the price obtained after an internal evaluation, the company said on Monday.
Chip Eng Seng called the property site which is located in the Capital Zone in the Central Business District ", and added that the proposed acquisition would allow him to expand his presence in Adelaide after The acquisition of the Mercure hotel and Ibis Styles Grosvenor in March 2018.
"The company believes that, just like the Mercure Adelaide, the property, when it will be redeveloped into a new hotel, will benefit from the expansion of the hotel industry of Adelaide, "he said at the announcement of the wesbite of the Singapore Stock Exchange." In addition, the property status free of property offers potential for long-term capital appreciation. "
Company director and group leader Raymond Chia Lee Meng holds a 40% interest in another real estate development company, the LGB Group who owns the property at 51 Pirie Street. from the seller a partner of Mr. Chia, and the proposed acquisition constitutes a transaction of interested person under the registration rules here, notes Chip Eng Seng.
Chip Eng Seng listed on the motherboard had already signed a letter of non-binding intention may acquire all or part of the activities of the LGB group, according to an announcement made in January 2016, when appointing M Chia.
Such potential acquisitions could involve two projects in Adelaide, including 51 Pirie Street. Chip Eng Seng said Monday that "the other project remains under evaluation by the company".
"Except for Mr. Chia, none of the directors and, to the directors' knowledge, any of the majority and controlling shareholders of the corporation has any direct or indirect interest in the proposed acquisition," the company added.
who noted that Mr. Chia had refrained from conducting a review and approval process of the Pirie Street Market
by internal sources, should take place before July 31 and is not expected to have a significant impact on net tangible assets and earnings per share for the year to December 31.
Chip Eng Seng closed flat at $ 0.84; the announcement
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