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Published December 24, 2011
Pollux buys Geylang Road property for $25m
By CONRAD TAN
POLLUX Properties has bought a property at Geylang Road for $25 million, citing its potential for redevelopment.
Pollux said that its indirect, wholly owned subsidiary, Pollux Treasures, had exercised an option to acquire the property at 345 Geylang Road, comprising a plot of freehold land with an area of 1,350.2 square metres, and a commercial-cum-residential building on the land. The acquisition is scheduled to be completed in 12 weeks, Pollux said.
The property has a maximum plot ratio of three for commercial development and 2.8 for residential development, and is currently zoned as 'part commercial/part residential/institution', Pollux said. The group plans to redevelop the property, subject to approvals from the relevant authorities, it added.
Pollux paid $250,000 to the property's current owner, Geylang 21 Pte Ltd, upon the grant of the option, and a further $1 million on exercising the option as a deposit. The remaining $23.75 million of the purchase price must be paid by March 15, 2012.
Pollux said that it intends to finance the acquisition through a mix of its own cash and bank loans. It plans to tap external sources of funding to finance the cost of redeveloping the property, subject to market conditions.