CATALIST-LISTED Annica Holdings on Wednesday announced the proposed disposal of 38 Kallang Place to Oversea Supplies for S$3.33 million.
The property, a single-storey intermediate terrace factory with mezzanine level, occupies a land area of about 1,034 sq m. It is a leasehold property with a 60-year lease granted by JTC Corporation commencing from June 20, 1981.
Annica said that it had opted to sell 38 Kallang Place because it no longer needed to conduct any operations at the property, rendering it a "non-core asset". This was after Annica had disposed of its 60 per cent shareholding in Industrial Power Technology (IPT), a power plant developer which had previously occupied the property for operational use.
Annica added that the sale would provide liquidity and cash capital for the group, and is in line with its "strategic turnaround plan" to restructure its non-strategic assets as stated in its annual report for the financial year ended Dec 31, 2015.
The consideration of S$3.33 million is approximately one per cent above the open market value of S$3.3 million, according to Annica.