LHN unit takes lease on Tampines property to grow space optimisation business

LHN Space Resources, an indirect wholly-owned subsidiary of LHN Limited , has taken out a lease on Space @ Tampines, a 59-unit industrial property for three years and 11 months, effective Thursday (Oct 13).

In a bourse filing on Wednesday, LHN said that the tenancy of the property will be recognised as right-of-use assets for approximately S$53.1 million. The value is based on the present value of the aggregated lease payments made during the term, plus the option to renew for a further term of three years.

According to the terms of the lease, the revised rent during the further term of three years will not exceed 110 per cent of the initial rent.

The company cited commercial sensitivity as a reason for not disclosing the total consideration amount payable under the lease agreement.

The property’s landlord is Oxley Bliss, a limited liability company which is 70 per cent held by Oxley Holdings and 30 per cent held by Lian Beng Bliss, a wholly-owned subsidiary of Lian Beng Group .

Under the Planning Act 1998, Space @ Tampines has a Business 2, “Clean and Light Industry” zoning, where companies in general and special industries can operate.

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The property has an estimated floor area of approximately 42,000 square metres. LHN Space Resources will offer the business spaces to tenants under the company’s space optimisation business.

As Fragrance Limited, which owns 54.04 per cent of the share capital in LHN, has provided its written approval for the right-of-use acquisition, no shareholders’ meeting will be convened to approve the acquisition.

Shares of LHN closed down 1.9 per cent or S$0.005 at S$0.26, while Oxley Holdings shares closed flat at S$0.16 and Lian Beng’s shares closed down 1 per cent or S$0.005 at S$0.50 on Wednesday, before the announcement.