HS Optimus Holdings Limited Announces Major Property Disposal in Melbourne

Key Highlights

• Disposal of Freehold Heritage Building: HS Optimus Holdings Limited (“HS Optimus” or “the Company”) has announced the sale of its wholly-owned subsidiary’s property at 23-31 Lincoln Square South, Carlton, Melbourne, Australia, for a total purchase consideration of AUD 19.70 million (approx. S\$16.75 million).
• Significant Profit on Disposal: The transaction is expected to result in a profit of approximately AUD 6.12 million (approx. S\$5.20 million), after deducting estimated expenses.
• Positive Revaluation: The purchase price notably exceeds the latest independent valuation of the property, which was AUD 16.0 million as of 31 March 2025.
• Immediate Financial Impact: The disposal will substantially improve the Group’s Net Tangible Assets (NTA) and Earnings Per Share (EPS).
• Proceeds Usage: Funds will be used to fully settle an existing loan facility and the remaining balance will be allocated to other investment opportunities and working capital.
• Transaction with Unrelated Party: The purchaser is a well-established educational institution in Melbourne, not related to the Group or its controlling shareholders.
• Settlement Timeline: The transaction will be completed on 23 December 2025.

Detailed Analysis

Transaction Background

On 19 December 2025, HS Optimus Holdings Limited, through its subsidiary Ambertree Vic Mel (Lincoln) Pty Ltd (“ABTL”), entered into a binding contract to sell its freehold, vacant, fully refurbished five-storey heritage building located near Melbourne’s CBD and the University of Melbourne. This property sits on approximately 906 sqm of land with a total building area of 3,745 sqm, boasting a planning permit for Purpose-Built Student Accommodation.

The sale follows an Expressions of Interest campaign managed by Jones Lang LaSalle (VIC) Pty Limited, resulting in the acceptance of the successful bid from an established educational institution. The agreed price of AUD 19.70 million was determined on a willing buyer, willing seller basis and is demonstrably above the most recent valuation of AUD 16.0 million, indicating strong market interest and value realization.

Financial Impact and Shareholder Value

• Net Tangible Assets (NTA): Post-transaction, the Group’s NTA will rise from S\$46.8 million to S\$52.0 million, translating to an increase in NTA per share from 0.87 cents to 0.97 cents.
• Earnings Per Share (EPS): The disposal is expected to turn around the Group’s profitability for FYE25, converting a net loss of S\$2.61 million to a net profit of S\$1.50 million, and EPS from a loss of 0.05 cents to a positive 0.03 cents per share.
• Balance Sheet Strengthening: Settlement of the outstanding loan facility secured by the property will reduce leverage and enhance the Group’s financial flexibility.
• Capital Reallocation: Proceeds, after loan repayment, will be available for deployment into new investment opportunities and to support working capital needs, potentially driving future growth.

Other Noteworthy Details

• No directors, controlling shareholders, or their associates have any direct or indirect interest in the sale, ensuring transparency and alignment with shareholder interests.
• The transaction is part of the Company’s core property business and is not expected to materially alter the Group’s risk profile.
• Copies of the sale contract are available for inspection at the Company’s registered office for three months following the announcement.

Shareholder Considerations

This disposal is a significant corporate event for HS Optimus Holdings Limited, materially improving its financial position and profitability. The sale price achieved is well above the latest valuation, indicating prudent asset management and a strong negotiating position. The cash proceeds will strengthen the balance sheet and provide funding for future growth initiatives. Investors should note the immediate uplift in NTA per share and the reversal from net loss to net profit for FYE25, both of which are likely to be viewed positively by the market and may have a favorable impact on share price.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should consider their own circumstances and consult with professional advisors before making any investment decisions. The information provided is based on company announcements and public disclosures as of 19 December 2025. The author assumes no responsibility for any actions taken based on this information.

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