LHN Group unit to acquire Arab Street property for $6.4m

The group plans to operate the property as a co-living space.

LHN Group's subsidiary, Coliwoo West, will be acquiring the Arab Street property for a purchase consideration of $6.388m, exclusive of goods and services tax (GST).

In a bourse filing, the group said Coliwoo West has already paid an initial deposit of  $319,400 exclusive of GST to Chamber Investment Holdings.

The remaining balance of $6.07m will be paid upon completion of the acquisition and will be funded by a combination of internal sources of funding and bank borrowings.

Post-acquisition, the group said it plans to operate the Arab Street property as a co-living space.

"Once the Arab Street Property commence operations, it will expand the group’s portfolio of properties under the co-living business in Singapore, increase the brand value of COLIWOO, provide potential capital appreciation to the group and provide additional opportunities to generate revenue," LHN said.

Arab Street is located at 48 Arab Street Singapore and has a total land area of 122.9 sq.m with a remaining lease of approximately 29 years.