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.
Shares in Tiong Seng closed flat at 8.2 cents on June 18.
