LHN Group acquires Geylang property for $30m via joint venture

The JV company paid $3m, representing 10% of the purchase price.

LHN Limited has announced the establishment of a joint venture company to acquire a property located at Lorong 22 Geylang in Singapore for $30m, excluding GST.

The acquisition was facilitated through a 50:50 joint venture structure.

According to the bourse filing, the company entered into a joint venture with a so-called ‘JV Partner A’. The joint venture was established to enter into another joint venture with the ‘JV Partner B’ for the acquisition, redevelopment, marketing and sale of the property.

The joint venture company paid $3m, representing 10% of the purchase price, as option money to secure the acquisition. The property will be redeveloped for sale, in line with LHN's growth strategy in the Singapore property market.

The joint venture involves LHN Group and its partner, with LHN providing management services for the development and subsequent sale of the property. The acquisition has been classified as a disclosable and connected transaction under Hong Kong listing rules.