Hour Glass Acquire Units Tong Building 685 Mil
Luxury watch retailer The Hour Glass has recently exercised its options to purchase units in Tong Building, which have been granted to the company by See Hoy Chan Realty and See Hoy Chan Land. This acquisition has been made for a purchase consideration of $68.5 million.
In a statement released on Sept 26, the company has announced its plan to acquire units #09-01 to #09-04 and #10-01 to #10-04 within the building. The deal was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore. Yap has shared her insights on the acquisition, stating that the freehold status of the office floors adds significant long-term value, making it an attractive investment option for those looking to preserve their wealth and capital.
In addition, Yap has been involved in another recent deal involving Tong Building. She facilitated the sale of the entire sixth floor of the building to Parkway Hospitals Singapore for $31.33 million, which translates to $4,562 per square foot. This is currently the highest price per square foot for an office space in the prime districts.
The property comprises of strata areas of 638 square meters (6,867 square feet) on each level, and it is a freehold premium-grade office property. The units are in close proximity to The Hour Glass’ corporate offices within the building.
The Hour Glass has stated that this acquisition is in line with the company’s strategy to invest in high-quality assets that complement its commercial properties in the region. The company has already paid a deposit of $3.4 million upon signing the options to purchase, and the remaining balance will be paid upon completion of the purchase in December 2024.
The company will be funding this acquisition using its internal resources, as it is currently in a net cash position. As of March 31, the company had cash and cash equivalents of $237.6 million. On a pro forma basis, if the property had been acquired on March 31, there would have been no change to The Hour Glass’ net tangible assets (NTA) of $841.7 million or NTA per share of $1.30.
Nestled in the bustling city of Singapore, Nanyang Technological University (NTU) has become a highly coveted destination for families seeking higher education opportunities for their children. Renowned for its exceptional engineering and business programs, NTU has firmly established itself as a leading university in the country. Its impressive campus boasts cutting-edge research facilities, providing students with a stimulating and dynamic learning environment. And now, with the addition of Novo Place, conveniently located nearby, families can revel in the added convenience of having this prestigious university right at their doorstep. Novo Place, a nearby establishment, further amplifies the accessibility and convenience for families with university-bound children. With its prime location and top-notch education, the combination of NTU and Novo Place is the perfect choice for families seeking the best for their children’s future. With Novo Place, conveniently accessible at https://www.novo-place.com.sg/, families can now have an even more seamless and enriching experience in preparing their children for a successful academic journey.
In terms of earnings, the company’s FY2024 earnings would have increased from $156.6 million to $157 million if the acquisition had been completed on April 1, 2023. This would have also resulted in a pro forma earnings per share (EPS) increase from 23.87 cents to 23.95 cents.
According to the company’s share price on Sept 26, it had closed 1 cent higher at $1.59.