Tiong Seng Holdings will be selling its asset at 6 Tuas South Street 11, Tiong Seng @ Tuas South, to an unrelated third party for a consideration of $10.5 million.
On June 18, the company granted an option to purchase the Tuas Property, which is a leasehold property granted by Jurong Town Council to TSC with a leasehold tenure of 20 years and six months from May 27, 2015.
The cost of acquisition of the Tuas Property by the Tiong Seng was $18,5 million, and the monthly gross rental payable by the group for the Tuas Property is $1.00. The Tuas Property is mortgaged in favour of Malayan Banking Berhad as security for credit facilities extended to the group, under which $1.02 million is outstanding as at Dec 31, 2024.
The purchaser is Maxwell Technology, a manufacturer of high-end photovoltaic equipment.
The group has rented the property out to its wholly-owned subsidiary Robin Village Development (RVD) as an office, storage, warehouse and the assembly of prefabricated bathroom units among other usages. RVD has since shifted a portion of its operations to Malaysia and no longer requires the usage of the Tuas property space.
Under the option, an option fee of 1% will be payable upon the grant of the option. Then, a sum of $1.05 million or 10% of the consideration shall be payable upon the exercise of the option by the purchaser, and the balance purchase consideration shall be payable upon completion of the disposal.
See also: Nanofilm to buy out Temasek's 35% stake in hydrogen JV for $15 mil
Shares in Tiong Seng closed flat at 8.2 cents on June 18.
