HG Metal has announced that it will acquire a leasehold industrial property at 47 Tuas View Circuit for $20.8 million through its wholly-owned subsidiary HG Construction Steel which exercised its option-to-purchase (OTP).
The acquisition is to be funded by the group through a combination of internal resources, bank borrowings, and/or net proceeds previously raised from the group’s rights issue and share placement exercises.
The Tuas View Circuit property has a tenure of 30 years which commenced on Dec 15, with approximately 12 years remaining. It comprises a 3-storey ancillary office building, two 3-storey, 2007 production buildings and a single-storey single-users industrial development comprising two factories, with a land area of approximately 24,163.8 square metres.
HG Metal intends to use the property to expand its production facilities and capabilities and increase storage capacity.
The exercise of the OTP will result in a 5% amount of the purchase price payable on the issuance of the OTP, with the remaining 95% paid upon legal completion of the acquisition.
Shares in HG Metal closed flat at 49 cents on Dec 16.
