Khairani Afifi Noordin Wed, Jun 01, 2022
Luxury watch retailer The Hour Glass’s subsidiary has proposed to acquire a freehold property in Brisbane, Australia from Dexus Wholesale Management for A$82.2 million ($81.4 million).
The Hour Glass Australia (THGA) entered into a sale and purchase agreement (SPA) with Dexus for the acquisition of a two-storey retail and office building, which occupies a site area of 1,521 square metres.
The property is located at the junction of Edward Street and Elizabeth street, within the main luxury retail precinct in the heart of Brisbane’s central business district. It has a total net lettable area of 2,030 square metres.
The acquisition of the property is in line with The Hour Glass’s strategy of owning properties at prime locations in selected cities. The purchase consideration was arrived at on a “willing buyer-willing seller” basis, based on THGA’s assessment of the property’s value having regard to its prime location.
The purchase consideration will be funded by internal resources and bank borrowings. A deposit of A$4.1 million was paid by THGA at the exchange of the SPA.
The balance of the purchase consideration is payable in full upon completion of the sale and purchase of the property pursuant to the SPA, which is expected to be effected in end of June 2022.
Shares in The Hour Glass closed 2 cents higher or 0.84% up on Jun 1 at $2.39.