SingPost is selling 10 HDB shophouses to Union Gas chairman for S$55.5 million
[SINGAPORE] Singapore Post (SingPost) is selling 10 Housing & Development Board (HDB) shophouses for S$55.5 million, after putting them up for sale and leaseback earlier this year.
On Friday (Aug 8), the national postal service provider said in a bourse filing that a preferred bid had been identified for the properties. However, the transaction is not completed yet and will be subject to approvals before it is finalised, it added.
The buyer is Teo Kiang Ang, the founder and non-executive chairman of Union Gas, who confirmed with Lianhe Zaobao on Aug 4 that he had purchased the properties.
Teo is also the chairman and founder of taxi service provider Trans-cab.
The 10 properties were offered for sale via an expression of interest exercise, which closed on Jul 30, and marketed by CBRE. They form the majority, if not all, of SingPost properties situated in HDB blocks, based on the post office locations on the group’s website as at June.
Teo said that the winning bid was made by one of his companies. The purchase price is at an 11 per cent premium to the S$50 million total asking price.
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With a total strata area of 21,118.77 square feet, the gross yields for the shophouses range from 4.32 to 4.98 per cent per annum.
Spread across HDB heartlands, the asking prices ranged from S$2.4 million for a Teban Gardens Road shophouse to S$7.1 million for a Bedok North shophouse.
The other shophouses are located at Tanjong Pagar, Clementi West, Towner Road, Serangoon Central, Jurong West, Ang Mo Kio, Bukit Merah Central and Ghim Moh Estate, said a SingPost spokesperson.
The sale and leaseback exercise is part of SingPost’s plan to divest its non-core assets while retaining its current post office services, a spokesperson from the company had told The Business Times on Jun 19.
SingPost has closed around a dozen of its post offices in recent years amid a secular decline of the sector.
Its post office network has also been unprofitable in recent years, with operating losses at S$14.4 million for FY2025 and S$14.5 million for FY2024.
The company in 2024 announced plans to divest non-core assets and businesses to unlock shareholder value.
This included the retail-commercial mixed development SingPost Centre, which was valued at S$1.1 billion as at September 2023.
Shares of SingPost were trading at S$0.50, down 1 per cent or S$0.005 as at 2.23 pm on Friday.
