Real estate management services company LHN Group added 45 new keys in a Balestier property and 29 new facilities management contracts, according to its 1QFY2025 business update. 

 

The group manages 2,915 keys across its Coliwoo co-living projects in Singapore and 85 SOHO projects overseas as at Dec 31, 2024 compared to the 2,895 keys reported in the quarter prior. 

 

As at end Dec 2024, the group&rsquo s overall occupancy rates were at 95%. 

 

For its facilities management business (FM), the group secured 29 new contracts and re-tendered 75 existing FM contracts. 

 

The group&rsquo s carpark projects and lots stood at 100 car parks with over 27,000 lots in Singapore, and over 700 lots in Hong Kong as at Dec 31, 2024. The lots in Hong Kong are expected to cease operations upon the lease expiry by April 2025. 

 

For its energy business, the group maintained its total solar energy capacity at 8.8 megawatt (MW). It has a total of 19 electric vehicle (EV) charging points as at Dec 31, 2024. 

 

On its outlook, the group entered a joint venture with two partners on Feb 14 to acquire and redevelop property in Geylang, with a land area of 1,179.29 sqm. The building will be transformed into a strata-titled commercial building for retail and office use. 

 

LHN has also issued six options-to-purchase for its newly constructed LHN Food Chain food factory at 55 Tuas South Avenue 1.

 

In FY2025, the group will be launching three new Coliwoo properties located at Arab Street, Balestier Road and Upper Bukit Timah Road. These projects, which include a hotel, a residence, and a serviced apartment, are situated in conservation, heritage, and city center areas, and will add over 130 keys to its current operations. 

 

Two more Coliwoo projects at Middle Road and Armenian Street are set to be launched in the upcoming financial years. 

 

The group says that it aims to increase its total solar energy capacity to 13MW in FY2025. 

 

LHN Group, a direct wholly-owned subsidiary of dual-listed LHN Limited, has established a joint venture (JV) with its JV partners to acquire, develop, market and sell the property on 30, 30A, 30B, 32, 32A and 32B Lorong 22 Geylang and 32D, 32E, 32F, 32G, 32H and 32J Lorong 22 Geylang. The property was purchased at $30 million excluding GST.

 

According to LHN&rsquo s Feb 14 filing, LHN Group established a JV with its joint venture partners, so-called &ldquo JV Partner A&rdquo on the same day. The JV was established so that the group can enter into another JV with &ldquo JV Partner B&rdquo . The newly-created JV, or JV Company B, will then acquire, develop, market and sell the Geylang property.

 

The newly-formed JV has been granted the option the purchase for the property, although the option has yet to be exercised. The filing adds that the JV partners intend to redevelop, which includes demolishing and rebuilding property into a strata-titled commercial building. The JV will market and sell the units in the open market and lease, run and, or operate the remaining unsold units for commercial usage business.

 

LHN Group will be the sole project management company in charge of the new JV business.

 

Ching Chiat Kwong, executive chairman and CEO of SGX-listed Oxley Holdings , has a 90% stake in JV Partner A while his son, Shawn Ching Wei Hung, executive director and group general manager of Oxley has the remaining 10% stake in the JV partner. As at Feb 14, JV Partner A is a substantial shareholder of Coliwoo (TK), an indirectly non-wholly owned subsidiary of LHN Limited. As such, the JV partner is a connected person to LHN Limited at the subsidiary level.

 

JV Partner B is a Singapore-incorporated investment holding company and is 50%-owned by Darren Low Jun Jie and Tan Hui Kang equally. Low is a lawyer while Tan is a doctor.

 

The new JV is 58%-owned by JV Company A and 42%-owned by JV Partner B. JV Company A is 50%-owned by LHN Group and 50%-owned by the JV by Ching and his son. LHN Group and the Chings will pay a maximum contribution of $14.5 million each.

 

It' s not the first time that LHN and the Chings have teamed up. Last year, LHN and the Chings acquired Wilmer Place at 50 Armenian Street for $26.5 million on Apr 9, followed by another deal on April 22, involving GSM Building at the corner of Middle Road and Waterloo Street.

15 Dec 2024 15:59