The purchase consideration of $11 million was arrived at on a willing buyer, willing seller basis. A total deposit of $1.1 million, or 10% of the purchase consideration was paid upon the exercise of the option. $110,000 was paid to the vendors, and $990,000 to the vendor’s solicitors to be held by them pending the completion of the acquisition.
The book value of the coffee ship property is about $11.76 million, with a stamp duty of $760,000.
The property is a two-storey housing and development board (HDB) unit comprising a coffee shop on level one and a three room HDB flat on level 2. It is about 31 years old with an average floor area of 358 square metres.
Kimly says that the acquisition aligns with its strategy to expand its network of food outlets in Singapore and establish new food outlets and food stalls at strategically suitable locations.
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It aims to strengthen its market presence by opening more food stalls under its food retail division, and will continue to seek opportunities to acquire and/or operate more strategically-located coffee shops in mature estates with established foot traffic.
Shares in Kimlyclosed flat at 32.5 cents on May 22.
