LHT Holding’s wholly-owned subsidiary, LHT Ecotech Resources, has obtained from DBS Bank an option to purchase (OTP) for the property at 6 Tuas South Street 10. The OTP was obtained on Dec 29 and will lapse if not exercised within two weeks.
DBS Bank is the mortgagee of the property. Transvert Scaffold & Engineering is the mortgagor and lessee of the property.
According to LHT Holdings, the existing lessee has obtained a leasehold interest in the property from JTC Corporation. The existing lease of the property commenced on Feb 1, 2023. As at Dec 30, the unexpired leasehold property of the property is about 13 years.
The property has a land area of approximately 10,000 sqm (107,639.1 sq ft) with a three-storey detached factory and a separate workers’ dormitory erected on the land. The property has a gross floor area (GFA) of about 8,194.58 sqm.
The sale and purchase of the property is subject to the proposed purchaser obtaining the written consent and, or approval from JTC for the sale and purchase of the property. The purchaser also needs to obtain the consent for the property’s change of use to a storage and supply hub for packaging materials, in-house maintenance/repair of equipment and trucks as well as the upcycling of metal parts and components.
Finally, clearances from the relevant authorities need to be obtained.
Purchase price
The purchase price of the property is $3.85 million and will be payable in cash. Of the amount, 5% o the purchase price will be payable upon the exercise of the OTP, minus the option fee that was paid on the date of the OTP.
The balance will be paid upon the completion of the purchase.
See also: Frasers Property: Narrowing the discount
Based on a valuation of the property dated Dec 15, the property’s open market value is $4.8 million. The property comes with an annual rental fee of $50,949.84. The annual rent is subject to an annual increase of 3%.
Shares in LHT closed flat at 69 cents on Dec 30.
