TEHO International 5OQ , through its wholly-owned subsidiary, TEHO Water & Envirotec, has granted Wong Siew Fong an option to purchase for the sale of a property at 1 Bukit Batok Crescent, #03-20.
The option to purchase was granted for a purchase consideration of $760,000 or $820,800 including GST.
The option will remain valid till 4pm on April 24.
The property is leasehold with a tenure of 60 years from March 13, 1997. It is a ramp-up factory unit that’s used for production work and has a gross floor area (GFA) of about 240 sq m (2583.34 sq ft).
The property is currently being used by TEHO Water & Envirotec as an office. Following the sale, TEHO Water & Envirotec will relocate its office to one of TEHO International’s existing properties at 1 Tuas Lane.
According to TEHO, $7,600, or 1% of the purchase consideration will be payable upon the grant of the option.
The sum of $30,400, or 4% of the consideration will be payable upon the exercise of the option.
The balance of 95% will be payable once the disposal is completed, which is supposed to take place 12 weeks upon the exercise of the option.
The proposed disposal is subject to the receipt of satisfactory replies to the legal requisitions and interpretation plans sent by the purchaser’s solicitors to the various government departments and the Land Transport Authority (LTA). If this fails, the purchaser may opt to rescind the option and TEHO Water & Envirotec will have to refund the purchaser the amount the purchaser has paid under the option to purchase.
See also: Frasers Property: Narrowing the discount
Upon the completion of the disposal, TEHO Water & Envirotec has agreed to pay the property agent a commission fee of $11,400. If the option fee or balance deposit is forfeited, TEHO Water & Envirotec will have to pay the property agent the lower or either half of the forfeited sum or the commission fee.
The proposed disposal is said to be in the group’s best interests as the value of the property is realised. It will result in a positive cash inflow of $345,093 after the deductions for the payment of the mortgage loan and the commission fee.
The proposed disposal will result in a gain on disposal of about $172,313.
Shares in TEHO closed flat at 4.5 cents on Feb 14.
