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Aluminium supplier Soon Lian buys Tuas factory for S$7.8 million
ALUMINIUM alloy supplier Soon Lian Holdings on Thursday said that it has entered into a deal with Halliburton Far East to buy a single-storey detached factory at 6 Tuas Lane for S$7.8 million.
There is also a payment of goods and services tax of S$546,000.
The property has a built-in area of about 4,800 sq m and a land area of about 9,800 sq m. The property is leased from JTC for a term of 30 years which started from January 2008.
The company is in the process of disposing of its existing premises at 9 Tuas Avenue 2, and its directors felt that the new property is an appropriate replacement for the group's storage and fabrication of aluminium alloy materials as well as to house their offices.
They felt that the previous premises was too big for its business. "The built-in area of the (new) property, which is approximately 39 per cent smaller than the existing property, is suitable and sufficient for the current operations of the group," it said.
The purchase price is expected to be funded by internal resources, including a portion of the proceeds from the sale of the existing property, and bank loans.
The purchase is conditional on the written in-principle approval from JTC. An extraordinary general meeting will also be convened to seek approval from shareholders for the proposed purchase.