Tung Lok Central Restaurant, the wholly-owned subsidiary of SGX-listed Tung Lok Restaurants, has entered into a tenancy agreement with Riverhub Pte Ltd to lease eight units and designated outdoor refreshment areas at The Central to operate Tung Lok Signatures for three years.
The eight units are located on the second floor of the mall on Eu Tong Sen Street.
During the duration of the lease, the estimated rental fees payable come up to around $1.9 million, which represents 18.29% of the latest audited net tangible assets (NTA) of Tung Lok Restaurants. Tung Lok Restaurants’ latest audited NTA was $10.2 million as at March 31.
The rental value is said to be “within the reasonable range” of the prevailing market rental as at Aug 3.
The tenancy agreement constitutes as an interested person transaction (IPT) as Riverhub is 49.99% owned by the estate of Ng Teng Fong, who is also the controlling shareholder of Tung Lok Restaurants through its controlling interest in Goodview Properties Pte Ltd.
Goodview Properties, in turn, holds a 19.69% stake in Tung Lok Restaurants.
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Riverhub, who is also 50% owned by Philip Ng Chee Tat, is another controlling shareholder of Tung Lok Restaurants, as he is a beneficiary of the estate of Ng Teng Fong.
Accordingly, the tenancy agreement has brought the total value of IPTs between Tung Lok Restaurants and Goodview Properties to $2.8 million, or 27.25% of the former’s latest audited NTA as at March 31.
Shares in Tung Lok closed at 11.1 cents on Aug 29.
