LHN Space Resources, an indirect wholly-owned subsidiary of LHN Group, has entered into a lease agreement for an industrial property on Oct 12.
The tenancy will last for three years and 11 months commencing on Oct 13 and expiring on Sept 12, 2026.
The property, known as Space@Tampines, is an industrial property located at 18 Tampines Industrial Crescent. Under the terms of the lease agreement, LHN Space Resources will lease a total of 59 units from the second to the seventh storeys.
LHN Space Resources will be entitled to an option to renew the lease for a further term of three years commencing one day after the expiration of the term, for a payment to be agreed between LHN Space Resources and the landlord.
The revised rent following the renewal of the lease will not exceed 110% of the current rent. LHN Space Resources shall provide the written notice for the renewal at least six months but not more than nine months before the expiration of the term.
Under the International Financial Reporting Standard or IFRS 16, the tenancy will be recognised as right-of-use assets for an amount of approximately $53.1 million. The amount is calculated with reference to the present value of the aggregated lease payments to be made under the lease agreement during the current term plus the option to renew for a further three years.
Shares in LHN closed 0.5 cent lower or 1.89% down at 26 cents on Oct 12.
