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Falcon inks S$7.4m sale-and-leaseback deal for offices, will repay debt

FALCON Energy Group is selling its Singapore offices in International Plaza for S$7.4 million and leasing them back at S$50,300 per month for three years.

Falcon, an offshore oil and gas contractor, will use the proceeds from the sale to settle outstanding debt facilities granted by United Overseas Bank and Ethoz Capital as part of a balance sheet restructuring strategy.

The two properties sit on the 15th and 22nd floors of International Plaza in the Central Business District, and occupy a total gross floor area of about 438 square metres. Each property has about 51 years and seven months left on a 99-year leasehold. The 15th floor unit was valued at S$4.25 million, and Falcon has assumed the same valuation for the 22nd-floor unit since both properties are the same size.

The purchaser, YDL Capital, is paying S$74,000 for the option to purchase the properties, and will have one week to pay a further S$296,000. The remaining consideration will be paid upon completion.

sentifi.com

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Falcon said that in light of the oil and gas industry's protracted downturn, the company is taking steps to restructure its business operations and balance sheet.