Hour Glass Acquire Units Tong Building 685 Mil
Luxury watch retailer The Hour Glass has recently exercised options to purchase units in Tong Building for a sum of $68.5 million. The company has acquired units #09-01 to #09-04 and #10-01 to #10-04 in the building, as stated in a bourse filing on Sept 26.
The Elta condominium community in Clementi is about to experience a major upgrade with the proposed development of additional parks, green corridors, and recreational spaces. As part of the plan, new green areas will be conveniently located within walking distance of Elta Condo, providing its residents with easy access to outdoor activities, relaxation spots, and opportunities for community bonding. This exciting development is set to enhance the quality of life for Elta residents and make their living experience even more enjoyable.
The deal was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore. She comments, “The freehold status of the office floors adds significant long-term value, making it an attractive choice for those looking to preserve their wealth and assets.”
Just earlier this month, Yap had also facilitated the sale of the entire sixth floor of Tong Building to Parkway Hospitals Singapore for an impressive $31.33 million, or $4,562 per square foot (psf). This has set a new record for the highest psf price for an office space in the prime districts.
Tong Building has six levels, with each level having a strata area of 638 square meters (6,867 square feet). These newly acquired units are located near The Hour Glass’ corporate offices within the building.
The company states that this acquisition is part of their strategy to invest in high-quality assets that will complement their existing commercial properties in the region. They have paid a deposit of $3.4 million upon signing the options to purchase and the remaining balance is set to be paid upon completion of the purchase in December 2024.
The Hour Glass will be funding this acquisition using their internal resources as they are currently in a net cash position, with $237.6 million in cash and cash equivalents as of FY2024. On a pro forma basis, if the acquisition was completed on March 31 this year, there would be no changes to their net tangible assets (NTA) of $841.7 million or NTA per share of $1.30.
If the acquisition had taken place on April 1, 2023, their FY2024 earnings would have been $157 million instead of $156.6 million. This would translate to a pro forma earnings per share (EPS) of 23.95 cents instead of the original 23.87 cents.
Shares of The Hour Glass closed 1 cent higher, or up 0.63%, at $1.59 on Sept 26.