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: KSH raises $8.67 million placing out treasury shares at 30.5 cents each
Shares in Tiong Seng closed flat at 8.2 cents on June 18.
