Construction firm Logistics ventures into property

[url]http://www.straitstimes.com/archive/wednesday/premium/money/story/construction-firm-logistics-ventures-property-20130626[/url]

[B][SIZE="5"]Construction firm Logistics ventures into property[/SIZE][/B]

Published on Jun 26, 2013

By Cheryl Ong


LOGISTICS Holdings is repositioning itself to become a property developer after it acquired its first site through a collective sale.

The construction firm announced yesterday that residents of Minton Court unanimously approved the sale of the site at 21 Paya Lebar Crescent for $13.4 million - or $1,010 per sq ft (psf) - through a wholly-owned indirect subsidiary Le Premier Development.

The freehold three-storey development comprises nine apartments, and sits on a residential plot with a land area of 13,271 sq ft. Residents can expect to receive a cash consideration of $1.5 million each from the sale brokered by Knight Frank, said a Logistics Holdings spokesman.

Logistics Holdings chief executive Phua Lam Soon said: "Notwithstanding the property market cooling measures, we are cautiously confident that with its good location, this property will attract much attention after redevelopment."

The Catalist-listed firm intends to redevelop the site into a group of high-end cluster homes consisting of six to eight units. It had earlier obtained approval from its shareholders to shift its focus to property development and investments in the Asean region, China and Australasia.

The acquisition will be financed by internal funds and bank borrowings.

Shares of the firm, which currently derives the bulk of its revenue through construction projects in the public sector, were not traded yesterday.

The counter close up 0.5 cent at 21.5 cents when it last traded on Monday.

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