Bauhinia International Finance (08340) issued an announcement concerning the tenant Zijing Internationa...
According to the Zhitong Finance App, Bauhinia International Finance (08340) issued an announcement regarding tenant Zijing International Pte. Limited (an indirect wholly owned subsidiary of the company) and owner Asia Square Tower 1 Pte. A lease agreement concluded by Ltd. to rent a leased property (Unit No. #15 -03, Asia Square Tower 1, 8 Marina View, Singapore) for office purposes. The lease period is two years from May 1, 2022 to April 30, 2024. The tenant entered into a rent-out agreement with the landlord on November 23, 2023. According to the rent-back agreement, if the preconditions stipulated therein are met, the tenant shall return the rent to the landlord on the rent-out date, and the landlord shall accept the tenant's return of all property, interest, rights and property rights under the tenancy agreement and arising from the tenancy agreement.
As the COVID-19 pandemic continues to recede and global travel restrictions have been largely lifted, the Group's employees in Hong Kong have resumed travel when necessary to facilitate communication and contacts with the Group's existing and potential new customers in various countries.
Given the scale of the Group's business in Singapore and the relaxation of global travel restrictions, the directors believe it may not be cost effective for the Group to retain leased properties in Singapore. Therefore, the director decided that it is in the interest of the Group to return the leased property by entering into a rent-out agreement.
The director also believes that considering that it is quite common for owners of commercial properties in Singapore to request compensation for two months of rent when leaving leased properties early, the compensation agreement is fair and reasonable. Furthermore, even after taking into account agreed compensation, the Group can still save on rental costs for the remaining rental period of the leased property.
Looking ahead, the directors will continue to review the Group's operating needs in Singapore. If necessary, the Group may consider entering into short-term leases or appointing a third party service provider to handle the Group's corporate and administrative tasks in Singapore to enhance cost efficiency and operational flexibility.