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Kimly's unit acquires 25% stake in Yishun coffeeshop property for S$6.06m
CATALIST-listed coffeeshop consolidator Kimly announced on Friday that its wholly-owned subsidiary Northstar has acquired a 25 per cent stake in a coffeeshop property in Yishun for a consideration of around S$6.06 million.
The total consideration of the acquisition will be paid for entirely in cash from the internal resources of the group.
Kimly said in its statement that the acquisition enables the group to "entrench its operating rights of the coffeeshop". It will then be entitled to first rights of refusal in the event of lease renewal or sale of the property. This comes as the company observed that long-term leasehold coffeeshop properties have become increasingly scarce in recent years.
In addition, the acquisition contributes to the group's "ongoing endeavours to pursue long-term direct ownership in the properties where the food outlets operated and managed by the group are located".
The coffeeshop acquired is located is on the ground floor of 925 Yishun Central 1; it has a 99-year leasehold title, which commenced on Sept 1, 1991.
Kimly said in a statement that the coffeeshop is in a prime location in a mature estate, within 300m of the Yishun integrated transport hub, Northpoint City and Yishun MRT station.
"The property enjoys high footfall, which is expected to grow in the near future due to upcoming residential developments in the vicinity," it said.
Shares of Kimly closed flat at 22.5 Singapore cents on Friday.