LIAN BENG: Strong cash reserves support acquisitions to lift recurring income

Khong Guan Industrial Building at 20 Mactaggart Rd in the MacPherson area. (Photo: Company)

Lian Beng Group has acquired Khong Guan Industrial Building, an 8-storey freehold light industrial building at 20 Mactaggart Rd, for S$31 million through its wholly-owned subsidiary, Smooth Venture Pte Ltd.

“Our strong financial position enables us to seize investment opportunities. We can thus continue to grow our property investment segment to build stronger recurring income so as to mitigate the cyclical nature of our other business segments.” – Ong Pang Aik Executive Chairman Lian Beng Group (NextInsight file photo)

Its latest asset acquisition comes just two to three months after it acquired 4 HDB heartland properties at Ang Mo Kio, Clementi, Bukit Merah, and Toa Payoh with a combined strata area of 104,809 square feet for S$151 million.

The Group intends to finance the acquisition wholly through its internal cash reserves.

It reported strong cash reserves of S$163.3 million as at 31 August 2016.

The recent spate of asset acquisitions reflects the Group's resolve to utilize its strong financial position to pursue business expansion through acquisitions, joint ventures, and strategic alliances.

Khong Guan Industrial Building has a gross floor area of 57,019 sq ft.

The purchase price of S$31 million translates into a price per sq ft of about S$544.