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Kimly to acquire coffeeshop property at Teck Whye for S$14m
CATALIST-LISTED Kimly announced on Tuesday that it plans to acquire a coffeeshop property in north-west Singapore for S$14 million.
Its wholly-owned subsidiary, Jin Wei Food Holdings, has acquired all the shares in Teck Whye 143 Food House (TW143) for S$10,000 in cash. TW143 had, on Jan 3 this year, exercised an option to purchase the coffeeshop property at 143 Teck Whye Lane for S$14 million.
Acquisition of the property by TW143 is expected to be completed on or around Nov 1.
The property has a 93-year leasehold title which commenced on July 1, 1992. With a strata floor area of 224 square metres, the coffeeshop has seven stalls, two kiosks and an outdoor refreshment area.
The acquisition will be paid in cash and will be funded through the group's internal resources and external financing. Kimly will operate and manage the TW143 Coffeeshop and will also operate mixed vegetable rice, dim sum and drinks stalls located in the premises.
Kimly said that the acquisition is in line with the group's strategy to expand its business to further grow its network of food outlets in Singapore.
Its directors said: "The group plans to look for opportunities to acquire and operate more strategically-located coffeeshops in mature estates with established footfalls. This strategy will enable the group to mitigate uncertainty surrounding its private leases, which can be influenced by expectations from owners and market competition."
Kimly shares closed at 22.5 Singapore cents on Tuesday, up half a cent.