HG Metal Manufacturing unit renews lease at 28 Jalan Buroh

A UNIT of steel distributor HG Metal Manufacturing has renewed its lease at 28 Jalan Buroh.

Oriental Metals had accepted a letter of offer from JTC Corporation for the lease renewal on Jan 15, HG Metal Manufacturing told the Singapore Exchange on Monday.

Under the terms of the letter, Oriental is granted a three-year development period by JTC, starting from Jan 2, 2018, to further invest in the construction of building and other structures and to install plant and machinery at the property.

JTC will grant a renewal of lease of the property to Oriental for a further term of 20 years commencing from Aug 1, 2019, subject to the fulfilment of certain terms and conditions.

HG Metal Manufacturing said that the investment on building and civil works as well as on plant and machinery at the property will be financed internally by the group's existing funds as well as through external borrowings.

The lease renewal is not expected to have any material impact on the group's net tangible assets or earnings per share for the current financial year ending Dec 31, 2018.

Shares of HG Metal Manufacturing closed 1.2 per cent or half a Singapore cent higher at 43 Singapore cents on Monday, before the announcement was made.