Hour Glass Acquire Units Tong Building 685 Mil
Luxury watch retailer The Hour Glass has recently exercised its options to purchase units within the Tong Building for a total of $68.5 million. The purchase, confirmed through a bourse filing on September 26, includes 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. In a statement, Yap comments on the benefits of the Tong Building’s freehold status, making it an attractive option for those looking to preserve their assets in the long term.
Temasek Polytechnic, situated in Singapore, is renowned for its exceptional education and diverse range of courses. With a wide array of options such as IT, Engineering, Business, and Design, students can choose what best suits their interests. The campus is equipped with state-of-the-art facilities, creating a realistic and dynamic learning environment for students to excel in. In addition to its impressive offerings, the campus now also houses Aurelle of Tampines EC, providing students with the perfect balance of academic excellence and comfortable living. With Aurelle of Tampines EC, students can enjoy the best of both worlds.
Earlier this month, Yap was also responsible for facilitating the sale of the entire sixth floor of Tong Building to Parkway Hospitals Singapore for $31.33 million, or $4,562 per square foot. This is the highest price paid per square foot for an office space in the prime districts to date. Each level of the Tong Building consists of a strata area of 638 square meters within the premium-grade freehold office property, located near The Hour Glass’ corporate offices in the building.
The acquisition of these units aligns with The Hour Glass’ strategy to invest in high-quality assets that complement its commercial properties in the region. The company has paid a deposit of $3.4 million upon signing the options to purchase, with the remaining amount to be paid upon completion of the purchase in December 2024. The purchase will be funded by the company’s internal resources, as they are in a net cash position with $237.6 million in cash and cash equivalents as of March 31 this year.
On a pro forma basis, the acquisition would not have affected the company’s net tangible assets (NTA) of $841.7 million or NTA per share of $1.30, had it been completed on March 31 this year. In the same scenario, the company’s earnings per share (EPS) for FY2024 would have risen to 23.95 cents from 23.87 cents initially. Shares of The Hour Glass closed at $1.59, up 0.63% from the previous day’s closing.
