OKP Holdings has continually distinguished itself as infrastructure and civil engineering giants throughout the Singapore area. They have devoted themselves to constructing airport runways, making taxiways, constructing urban roads, and having the utmost precision in oil and gas-related infrastructure. They also have had several opportunities to expand on their property development, as they are always on the lookout to find new properties to purchase. Their latest acquisition is one major example.
OKP Holdings Phoenix Heights Enbloc
OKP Holdings is proud to announce its latest purchase of Phoenix Heights, which is a residential complex located in the Bukit Panjang neighborhood. This 32-unit complex is currently zoned for residential use, and it has a specific area of 3,791.9 square meters or 42,750 square feet. The total floor area is 5,560 square meters, along with five stories and a 1.4 plot ratio. They acquired this property in August 2018 and they are currently in the process of remodeling the entire area.
OKP Holdings USB Holdings
Purchasing these units was a particularly challenging process. The OKP associate who wanted to purchase this unit was USB Holdings, and they already held a 25-percent stake in the property before making their bid. Naturally, it would make sense for them to become the majority owner, but coming up with the funding was a bit of a challenge. Ultimately, the purchase price was going to be S$33.1 million, and USB was eventually able to provide that amount. They reached that price after a strong consideration of the “prevailing market conditions” and the “prices of properties in the surrounding area.”
They first constructed Phoenix Heights in 1969 and the property still has 50 years remaining on their lease. USB is currently in the process of applying for a fresh 99-year lease along with its current remodeling work on the property.
OKP Holdings Phoenix Heights Downpayment
The group plans on funding their share of the purchase with some of their internal assets and some credit applications with commercial banks. At the time, they also believed that the application would not affect the share earning or the tangible assets before December 31st.
It is also important to note that besides OKP, Hwa Seng Group HSB, Ho Lee Group, and Chye Joo Construction B&D Investment and Property each have a 25% stake in USB. When the deal was completed, they instigated a tender deposit of $180,000 and then they paid 10 percent place 14 days after the deal was reached. When the news of this purchase was reported, the stock of OKP went up by half a Singaporean cent to S$0.225.