DEVELOPER Fragrance Group said on Thursday that it has bought a freehold property at Pasir Panjang Road for $4 million.
Fragrance said the property has a land area of 3,450 sq ft, which means that the land cost was $1,159 per square foot (psf).
The company intends to redevelop the property for commercial uses subject to the necessary conditions and approvals from the relevant authorities, it said. The acquisition is funded by internal funds.
Fragrance said that the transaction is not expected to have any material impact on the earnings and net tangible assets of the company in its 2008 financial year.
Earlier this month, Fragrance reported that net profit for its 2007 financial year more than doubled from $14.8 million to $30.4 million as turnover rose 39.2 per cent to $136.1 million.
The company attributed the increase to its property development business which contributed $112.5 million to revenue. Its hotel business contributed the other $23.6 million.
Fragrance’s shares closed half a cent up on Wednesday at $0.40, the last day of trading before the Chinese New Year break. The stock has climbed 10.5 per cent so far this year.
Source: Business Times 9 Feb 08