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KTL Global unit terminates lease for Tuas Bay office; to pay S$5.87m to landlord

THE board of offshore services firm KTL Global announced late on Thursday night that its unit, KTL Offshore (KTLOS), has entered into a deed of surrender to terminate its lease at the company's previous registered office at 71 Tuas Bay Drive, and 61 Tuas Bay Drive with effect from March 1, 2018.

In accordance with the deed, KTLOS is required to pay a total of S$5.87 million by Aug 25, 2021 to landlord SB (Pioneer) Investment (including rental arrears of S$1.5 million) and an insurance guarantee to secure KTLOS' payment obligation up to the amount of S$5.3 million.

KTLOS must pay its instalments on the first day of each calendar month.

In addition, it must make the first principal payment and interest payment to SB (Pioneer) Investment on or before April 6, 2018 for S$126,190; and subsequently on or before April 30, 2018, for S$178,816.62.

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KTL Global said the costs associated with the lease termination will be included in the group's statements for the financial year ended June 30, 2018.

"The settlement reached with the landlord reduces a long-term commitment, thus allowing the company to focus on benefiting from the recent increase in activity in the global offshore oil and gas market," KTL Global said.