Stamford Tyres has agreed to sell its unit at North Link Building for a cash consideration of $1.695 million. The unit is located at 10 Admiralty Street, #01-78.
The company’s wholly-owned subsidiary, Stamford Tyres S29 International Pte Ltd entered into a sale and purchase consideration with joint purchasers Ng Ah Siang and Lee Kim Poo. The sale is scheduled to be completed on Dec 20.
The unit has a 47-year lease from 2012 and measures some 521 sqm (5,608 sq ft). The unit has been leased out since January 2021. No valuation was carried out in connection with the sale.
Based on the unit size, the consideration represents an amount of $301 psf or a premium of around 1.2 times the property’s net book value of $1.38 million as at April 30.
According to Stamford Tyres, the sale will be beneficial for the group as the consideration is “attractive”. It also presents a good opportunity for the company to realise the gain from the appreciation of the property; the proceeds will be used to strengthen its cash position. The net proceeds from the sale will be used for the company’s business as well as for working capital purposes.
Shares in Stamford Tyres closed at 19 cents on Dec 19.
