Hiap Hoe to sell 39 property units for a guide price of $75m

Mostly located at Parklane Shopping Mall.

Hiap Hoe is planning to sell 39 strata-titled units from its investment properties portfolio.

In a report by OSK-DMG, of the 39 units, 33 are located in the basement level of Parklane Shopping Mall, while another 2 units are on level 4 of the same mall. The remaining units are in Bukit Timah Plaza and Balestier Point. Hiap Hoe has hired real estate consultancy firm JLL to conduct the sale. Guide price for the sale units is around SGD75m.

OSK-DMG adds that these shop units were acquired as part of the Superbowl Limited acquisition earlier this year. Superbowl held these properties in its portfolio for many years at historical cost. Today, the portfolio generates a healthy yield on cost and is sitting on substantial surplus. A successful sale would enable Hiap Hoe to unlock value from a non-core asset and recycle capital to grow its hospitality division. We maintain our BUY rating and TP of SGD1.03. 

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