Major LHN Limited Joint Venture Property Deal Collapses Amid Court Order: S\$1.74 Million Refund Secured

Key Points

• LHN Limited announces the immediate rescission of a significant property acquisition through its joint venture structure.
• The cancellation was triggered by a court order in Singapore prohibiting the seller and THK from disposing of or dealing with the property due to a family dispute.
• A substantial payment of S\$1,740,000 made by LHN’s JV Company A on behalf of JV Company B will be fully refunded within six months.
• No parties will have any further claims or demands against each other related to this transaction.

Detailed Analysis for Investors

LHN Limited, a dual-listed real estate and space optimisation company (Hong Kong: 1730, Singapore: 41O), has revealed a material update regarding its previously announced joint venture property acquisition. On 28 October 2025, LHN and its joint venture partners entered into a deed that immediately rescinds the option to purchase a property in Singapore.

This abrupt termination follows a court order from the Singapore courts, which prohibits the seller and associated party THK from selling or dealing with the property. The legal injunction stems from an ongoing family dispute, rendering the completion of the transaction impossible.

Importantly, LHN’s JV Company A had already paid S\$1,740,000 on behalf of JV Company B to the seller. Under the deed, this payment will be fully refunded within six months of the agreement’s date. The deal’s collapse eliminates any potential claims, demands, or compensation obligations among the involved parties, effectively drawing a line under the failed transaction.

Implications for Shareholders and Potential Impact on Share Price

• The deal’s collapse removes the possibility of a new property asset being added to LHN’s portfolio in the short term, which may affect anticipated growth or expansion strategies.
• The full refund of S\$1.74 million mitigates direct financial loss but signals unexpected legal and operational risks in joint venture transactions.
• Investors should monitor LHN’s future announcements for any strategic pivots or alternative investments following this setback.
• The news is likely to be price sensitive as it involves a failed acquisition, potential delays in growth plans, and the recovery of a significant cash outlay.

Leadership and Board Oversight

The announcement is signed by Executive Chairman and Group Managing Director Lim Lung Tieng, ensuring top-level oversight. The board consists of seasoned executives and independent directors, highlighting corporate governance and oversight in managing this setback.

Conclusion

This development is material and potentially share price sensitive, as it may impact investor sentiment regarding LHN Limited’s ability to execute on its property acquisition and growth strategy. While the refund mitigates financial exposure, the lost opportunity and underlying legal risks may prompt shareholders to reassess the company’s risk profile.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a qualified financial advisor before making any investment decisions related to LHN Limited.

View LHN Historical chart here