According to the Zhitong Finance App, Shouyi Holdings (02227) announced that the buyer (LTL 2 Pte Ltd, an indirect subsidiary of the company) accepted and exercised the option rights granted by the seller (Sing Moh Electrical Engineering Pte Ltd) under the option agreement on July 3, 2023. The seller agreed to sell the property at a cost of 9.38 million Singapore dollars in accordance with the terms and conditions of the option agreement.
According to reports, the property to be acquired is located at 450 Tagore Industrial Avenue Singapore 787821. As of the date of this announcement, the seller is the legal and beneficial owner of the property. The property is a two-story building with a total area of approximately 817.6 square meters. At the time of completion, the property will be sold to the buyer on an “as is” basis without any property rights, but the current lease will expire in January 2024. The property has been leased to tenants as offices and warehouses, with total annual rental income of approximately SGD 106,700 and SGD 106,700 for the two years ending December 31, 2022 and December 31, 2023. The tenant confirms that the lease will not be renewed and will be entitled to provide vacancy management after the existing lease expires. Once the buyer has obtained the right to manage the property, the property will be used as a warehouse and dormitory for foreign workers.
According to the announcement, the property could increase dormitory space for foreign workers and additional warehouse space needed to provide storage materials. Furthermore, it is easier for the Group to provide and manage quality living conditions for foreign workers in its own properties. It further believes that the acquisition will be an opportunity for the Group to invest in long-term capital.