Far East Group sells headquarters for $27m

After the disposal, profits are expected to soar from $655,000 to $22.69m.

Far East Group sold the property of its regional headquarters at 112 Lavender Street for $27m. The property is a freehold four-storey building with a net book value of $4.2m.

According to an announcement, Far East Group has recently bought a property at 51 Ubi Avenue 3 that will serve as its new headquarters. The acquisition is part of its plan to consolidate its operations, increase management oversight, and increase staff interaction.

“Further, the company is of the view that the proposed disposal will be in the best interest of the company as it will enable the group to realise the value of the property and provide liquidity and cash capital for the group, especially since the property is a non-core asset of the group,” Far East Group said.

Post-disposal, Far East Group’s assets are expected to rise from $20.93m to $43m, whilst profits are expected to soar from $655,000 to $22.69m.