The Hour Glass, the luxury watch retailer, has exercised its options to purchase units in Tong Building, for a total of $68.5 million. The units it is acquiring are #09-01 to #09-04 and #10-01 to #10-04. The deal was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore, and is expected to be completed in December 2024.The freehold status of the units adds long-term value, making them an attractive investment for preserving wealth and capital. This acquisition is part of The Hour Glass’ strategy to invest in high-quality assets that complement its regional commercial properties.Late last month, Yap facilitated the sale of the entire sixth floor of Tong Building to Parkway Hospitals Singapore for $31.33 million, or $4,562 per square foot. This is the highest price per square foot for an office space in the prime districts to date.The units being acquired by The Hour Glass are strata areas of 638 square meters each. They are located near the company’s corporate offices in the building. The purchase will be funded by The Hour Glass’ internal resources, as the company is currently in a net cash position with $237.6 million in cash and cash equivalents as of March 31, 2024.On a pro forma basis, this acquisition will not affect The Hour Glass’ net tangible assets or NTA per share. Additionally, the company will see a slight increase in its earnings if the acquisition had been completed earlier. Based on its current shares, earnings per share would have risen from 23.87 cents to 23.95 cents if the acquisition had been completed on April 1, 2023.Shares in The Hour Glass closed at $1.59 on Sept 26, up 0.63%.
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