LHN, Ching Chiat Kwong of Oxley Holdings, and His Son Team Up for Geylang Property Redevelopment

LHN Group, a wholly-owned subsidiary of dual-listed LHN Ltd, has teamed up with its partners in a joint venture (JV) to acquire, develop, market, and sell Geylang property located at 30, 30A, 30B, 32, 32A, 32B, 32D, 32E, 32F, 32G, 32H, and 32J Lorong 22 Geylang. The property was purchased for $30 million (excluding GST), according to LHN’s filing on February 14.

LHN established its first JV with "JV Partner A," which was created to enter into a second JV with "JV Partner B." This newly formed JV, known as JV Company B, has been granted the option to purchase the Geylang property, though the option has yet to be exercised. The freehold site is zoned for commercial/institutional use.

The JV partners plan to demolish and redevelop the property into a new strata-titled commercial building. The units will be sold on the open market, while unsold units will be leased or operated for commercial purposes. LHN Group will act as the sole project management company for this venture.

Ching Chiat Kwong, executive chairman and CEO of SGX-listed Oxley Holdings, owns 90% of JV Partner A. His son, Shawn Ching Wei Hung, Oxley’s executive director and group general manager, holds the remaining 10%. As of February 14, JV Partner A is a substantial shareholder of Coliwoo (TK), an indirect non-wholly owned subsidiary of LHN Limited, connecting JV Partner A to LHN Ltd at the subsidiary level.

JV Partner B is a Singapore-incorporated investment holding company, equally owned by lawyer Darren Low Jun Jie and doctor Tan Hui Kang. The newly created JV is 58% owned by JV Company A and 42% owned by JV Partner B. JV Company A is jointly owned by LHN Group and the JV between Ching and his son, with each party contributing up to $14.5 million.

This collaboration is not the first between LHN and the Chings. In the previous year, they acquired Wilmer Place at 50 Armenian Street for $26.5 million on April 9, followed by the purchase of the GSM Building at the corner of Middle Road and Waterloo Street on April 22.

Source: Edgeprop