OKP Holdings ventures into property development

The Mainboard-listed firm has taken a 10% stake in property developmment company CS Land Properties.

The deal involves an en bloc purchase of a block of condominiums at No 4 Amber Road, Singapore, said OKP in a release.

OKP added it is securing its stake in CSLP through its newly-formed subsidiary, OKP Land Pte Ltd, for a consideration of S$111,111, representing approximately 10 per cent of the enlarged issued and paid-up share capital of CSLP.

This follows a shareholders’ approval in September 2010 for OKP to diversify into property development. OKP expects the expansion into property to "enable the Group to tap the private sector for further business opportunities and ultimately help create shareholder value."

In connection with the investment, OKP has also entered into a loan agreement with CSLP where it will extend a loan facility of up to S$20 million. As at the date of this press release, S$18.4 million has been disbursed to CSLP.