Mooreast Holdings has agreed to divest 51 Shipyard Road for a cash consideration of $29.7 million. On April 27, the group announced that it had granted an option to purchase to HLMG-Nuform System for the sale of the leasehold 30,691 sqm (323,000 sq ft) property. The land — comprising Lots 192V, 193P and 288L of Mukim 7 — is held under a 30-year lease from Jurong Town Corporation (JTC) from July 1, 2013.
The group will receive net proceeds of $19.2 million, which it will use for expansion, capital expenditure and operational build-out purposes at its newly-acquired facility at 60 Shipyard Crescent.
Mooreast acquired the facility from Seatrium New Energy in March for $12.5 million as part of its strategic pivot towards the offshore renewable energy market.
The new facility, which measures 98,919 sqm or around 1.1 million sq ft, will be used to fabricate high-value subsea foundations. It will also serve as a logistics hub to hold, stage and assemble equipment and blocks. The group says having its activities in one location will enable it to “improve efficiency and reduce project congestion”.
Mooreast acquired 51 Shipyard Road for $18.5 million in September 2021.
The sale price exceeds the property’s independent open market valuation of $28 million as at April 8. The price also represents a “significant premium” over the book value of the property and plant and machinery of approximately $15.4 million as at Dec 31, 2025.
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On the pro forma basis, if the disposal was completed as at end-December 2025, the group’s net tangible assets (NTA) per share would have increased to 14.6 cents from 8.7 cents. The group’s earnings per share (EPS) would have increased to 7.26 cents from 1.41 cents originally.
Mooreast has received an option fee of $297,000. The option remains valid till 4pm on July 13. It has not been exercised by HLMG-Nuform. The proposed disposal is conditional upon the approvals of JTC and Mooreast’s shareholders, among other things.
“The proposed disposal allows us to unlock value from an asset that has served us well – and to redeploy that capital at a pivotal moment in our growth journey. With our new facility at 60 Shipyard Crescent now in hand, this transaction sharpens our focus and frees up resources that we can direct squarely towards our transformation to serve the emerging floating offshore wind market,” says Sim Koon Lam, founder, executive director and deputy chairman of Mooreast.
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“The proceeds will accelerate our build-out at 60 Shipyard Crescent, which quadruples our production capacity and positions Mooreast to take on projects of a scale that were simply not possible before,” adds Eirik Ellingsen, Mooreast’s CEO.
Shares in Mooreast closed 0.7 cents higher or 6.48% up at 11.5 cents on April 27.
