TSH Corporation said on Thursday night that it has entered a sale and purchase agreement with Singapore Shenguan to sell its freehold industrial land and building at 62 Burn Road, for S$16.1 million.
The property is a seven-storey freehold light industrial building with a site area of approximately 987 square metres and gross floor area of approximately 2,202 square metres. It is used to headquarter the company's offices and business operations. TSH Corp currently occupies one floor of the building and part of the ground floor, while the rest of the floor space is either leased out to third parties or is not occupied.
The property was valued at S$16.0 million as at May 3, by Jones Lang LaSalle.
TSH Corp said it intends to use the net proceeds of about S$15.9 million to repay an existing bank loan (about S$7.5 million) and discharge the mortgage on the property (S$4.5 million); the remaining net property proceeds will amount to about S$3.9 million. The company said it is still considering and finalising the specific uses for the remaining net property proceeds, and no specific usage is being envisaged by the company.