Mon, Jan 13, 2020 – 10:06 AM
KOYO Worldwide’s subsidiary has exercised an choice to buy a property close to Boon Lay for some S$2.54 million, the engineering agency stated in a regulatory submitting on Monday.
Koyo Engineering (SE Asia) has paid a deposit of S$246,380 to the seller, Stone Industrries (FAB), upon train of the choice to buy the event at four Kwong Min Highway.
The acquisition worth was arrived at after arm’s size negotiations, after bearing in mind the property’s S$2.5 million indicative market worth as at Oct 21, 2019, primarily based on a valuation report by an unbiased third get together.
Koyo Worldwide stated the property is meant for use for engineering fabrication and pre-fabrication of mechanical, electrical, and plumbing modules to be used in one in every of its current tasks.
The property, with a gross ground space of about three,800 sq. metres, contains a part of a manufacturing facility constructing comprising a single-storey workshop with an overhead crane, and an annex with a showroom/workplace/dormitory.
It is usually anticipated to enhance the corporate’s operational efficiencies because the shut proximity of the dormitory and workshop would facilitate smoother workflow, and the group would be capable of get pleasure from price financial savings since it could not have to hire a manufacturing facility and dormitory at some stage in the challenge, Koyo added.
The property sits on land underneath the Jurong City Company (JTC), with a leasehold tenure of 60 years with impact from Oct 1, 1966.
Buy of the property is topic to approvals from JTC, the Nationwide Setting Company, and/or another related authorities, Koyo stated.
Within the occasion that the approvals are not granted, the choice could also be terminated and the seller shall refund all monies paid by the corporate, together with the deposit.
As at 9.40am on Monday, Koyo shares have been buying and selling flat at 6.7 Singapore cents.