SINGAPORE – Soon Hock Enterprise Holding Limited has announced the successful divestment of an industrial property located in the Kaki Bukit area, securing a cash consideration of S$1.5 million. The transaction, executed through its wholly-owned subsidiary, Soon Hock Property Development Pte. Ltd., involves a unit at 8 Kaki Bukit Avenue 4 and is being acquired by Vivre Creative Design Pte. Ltd., an unrelated third party. This move is classified by the board as a strategic opportunity to unlock value from a non-core asset, immediately boosting the Group’s financial liquidity and strengthening its working capital position.
The property in question is a leasehold industrial unit situated within the Premier@Kaki Bukit building, a development well-known for housing diverse light industrial businesses in Singapore’s East Region. The asset holds a remaining lease tenure of approximately 45 years, having commenced its 60-year lease in late 2010. The sale price of S$1.5 million aligns precisely with the independent valuation conducted by Savills, providing confidence in the fairness and market-appropriateness of the transaction. This validation is key, especially in the context of the dynamic industrial property market in District 14, which continues to see consistent transaction activity due to its proximity to the Kaki Bukit MRT station and major expressways.
Financially, the divestment is set to provide a measurable lift to Soon Hock’s balance sheet. Based on the property’s latest book value of approximately S$1.17 million, the transaction is expected to yield a net gain on disposal of approximately S$336,117. While the company has indicated that this gain is not expected to materially alter its earnings per share or net tangible assets for the current financial year, the injection of capital is significant. This cash inflow enhances the Group’s flexibility to manage ongoing operational costs and pursue potential future business initiatives without incurring additional debt.
Executive Director and Chief Executive Officer Walter Tan Min Loon emphasized the pragmatic rationale behind the disposal. In a statement, he noted that the completion of the sale allows the Group to realize a substantial gain and secures immediate, fungible cash that can be deployed across core business segments. For a company focused on property development and investment, actively managing its portfolio to divest assets nearing their mid-lease life, particularly when achieving a valuation-aligned price, reflects sound capital management discipline.
The decision to sell comes at a time when the broader Kaki Bukit industrial cluster, along with neighboring areas like Ubi and Eunos, is evolving rapidly, driven by Singapore’s push towards modern, high-tech industrial spaces. By divesting a strata unit, Soon Hock is potentially shifting its focus towards larger, more control-oriented development projects or strengthening its position in other, more synergistic investment holdings. This strategic realignment suggests the company is positioning itself to capitalize on market shifts that favour large-scale, purpose-built industrial and logistics assets.
With the option to purchase now exercised, and completion scheduled for June 30, 2026, the market will be keenly watching Soon Hock’s subsequent moves. The immediate financial benefits, combined with the successful execution of this non-discloseable transaction, underscore the management’s ability to unlock value from its property holdings efficiently. Ultimately, this S$1.5 million divestment is less about the size of the deal and more about the strategic realization of capital, providing the Group with necessary resources and flexibility for sustained growth in the competitive real estate sector.
