Soon Hock Enterprise has announced the proposed disposal of the property located at 8 Kaki Bukit Avenue for a sale price of $1.5 million.
The property is a leasehold property with a 60-year lease that commenced on Dec 15, 2010, and the purchaser of the property is not related to the directors of the company.
Soon Hock says that the proposed disposal is good opportunity to divest, given that the completion of the disposal will allow the group to realise a gain on disposal. This will provide aditional working capital for the group’s operations.
An initial 1% deposit amounting to $15,000 was paid prior to the granting of the option to purchase, and a deposit of 4% of $60,000 will be paid upon the exercise of the option by the purchaser.
The balance 95%, or $1.425 million, will be paid upon the completion date which is to take place by 16 weeks and three days from the date of the exercise of the option.
The book value and net tangible value of the property as at March 31 is approximately $1,114,640.78. Upon completion of the proposed disposal, Soon Hock will report a net gain on disposal of approximately S$385,359.22.
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Shares in Soon Hock closed 0.5 cents lower or 0.84% down at 59 cents on Nov 7.
