Kimly acquires portfolio of food outlet properties for S$55.8m

CATALIST-LISTED coffeeshop consolidator Kimly has agreed to acquire a S$55.8 million portfolio of food outlet properties, comprising four coffeeshops, three industrial canteen units and a restaurant unit.

It will pay for the acquisition with cash of S$45.8 million.

Kimly will also raise S$10 million through the issuance of 40 million new shares at S$0.25 apiece, representing a premium of 8.7 per cent to the last traded price of S$0.23.

The four coffeeshops are located at Block 7 Everton Park, Block 246 Hougang Street 22, Block 380 Clementi Avenue 5 and Block 347 Ang Mo Kio Avenue 3.

The restaurant and one industrial canteen are located at 38 Jalan Pemimpin. The other two industrial canteens are located at 28 Senang Crescent.

Kimly said: "The group continues to distinguish itself from its competitors by having better control over its business processes and its involvement in various aspects of the supply. Besides managing food outlets, the group is also able to operate its own food stalls and supply the food stalls with semi and/or finished food products from its newly expanded central kitchen."

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It added that the supply of long-term leasehold coffeeshop properties for sale or lease in Singapore has become increasingly limited.

"Coffeeshop properties with strategic locations and large footfalls are particularly in demand. Through the acquisition, the group secures its long-term right of use of these properties to expand and grow its network of food outlets, and will continue to acquire and/or operate more strategically located food outlets in mature estates with established footfalls," it noted.

Kimly shares closed flat at S$0.23 on Friday before the announcement was made.