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Keong Hong Holdings to buy Chin Bee industrial buildings for S$10.8 million
CONSTRUCTION and property group Keong Hong Holdings plans to buy two industrial properties, to raise productivity in the pre-fabricated bathroom business.
Keong Hong Construction, a wholly owned subsidiary, entered into an option to purchase the buildings in the Chin Bee area of Taman Jurong for S$10.75 million, the company said on Friday.
The properties - 20, Chin Bee Drive and 21, Fourth Chin Bee Road - have a site area of 239,253 sq ft altogether, with a lease until June 30, 2035. The price was reached on an arm's length basis between a willing seller and willing buyer, said Keong Hong, which is buying the two properties as a single indivisible plot from paperboard box maker TCG Rengo (S).
The proposed acquisition "is in the ordinary course of business of the group", Keong Hong announced, noting that it will use the properties to raise productivity from snagging "adequate space" for the assembly and fitting of pre-fabricated bathroom units.
It added: "The building will also be co-located with the related companies of the group to harness business synergies and achieving better investment returns through shared usage of the premise."
The group also said that the proposed acquisition, which will be funded through both internal resources and bank borrowings, is not expected to have material impact on the earnings per share and net tangible assets per share for the year to Sept 30.
Keong Hong last traded at S$0.515 on Aug 23.