Catalist-listed Sanli Environmental 1E3 is consolidating its operations at 22 Chin Bee Drive, after completing the acquisition of the property.
The property was acquired for $13.8 million from Perpetial (Asia), in its capacity as trustee of ESR-LOGOS REIT . Through the acquisition, the company aims to streamline its corporate office and workshops, while also providing a centralised accommodation solution for its foreign workforce.
“A significant challenge in recruiting foreign workers in Singapore has been the limited availability of dormitory spaces. With the property equipped to house up to 270 foreign workers, the group is now well positioned to effectively address the dormitory shortage that previously hampered its operations,” it says in a filing.
Sanli’s operations and maintenance workshop as well as its magnesium hydroxide slurry manufacturing operation under its wholly-owned subsidiary Mag Chemical will both be consolidated at the new location.
“The consolidation of the group’s operations in one location will allow us to address the shortage of dormitory facilities in Singapore and it will enhance our operating efficiencies while lowering our operating costs for the long term,” says Sanli executive director and CEO Sim Hock Heng.
Following the acquisition exercise, the company will be disposing of its leasehold properties at 15 Kian Teck Drive and 28 Kian Teck Drive for $3 million and $4.95 million respectively.
See also: Interra Resources granted 12-month extension to meet SGX watch-list exit requirements
Shares in Sanli closed flat at 9.8 cents on Sept 15.
