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Nam Cheong subsidiary grants Option to Purchase to dispose of Paya Lebar property

NAM Cheong Offshore Pte Ltd, a subsidiary of Nam Cheong Limited, has granted an Option to Purchase to third party purchasers in a bid to dispose of its Paya Lebar property.

In a Singapore Exchange filing on Friday, the shipbuilder said: "The legal and beneficial interest, rights, powers and benefits of the group in relation to the Paya Lebar property are held by Nam Cheong Offshore Pte Ltd (NCOPL)."

The consideration for the proposed disposal is S$4.5 million. A sum of S$45,000 shall be payable upon the date of the Option to Purchase, and a further sum of S$180,000 shall be payable within 21 days of the date of the Option to Purchase.

The remaining S$4.3 million, which is equivalent to 95 per cent of the amount of the consideration, shall be payable upon completion of the proposed disposal, Nam Cheong said.

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The Paya Lebar property is a freehold property and has a gross floor area of approximately 545 square metres.

It is mortgaged to DBS Bank Limited; and all proceeds from the proposed disposal will go towards settlement of the outstanding amount under a credit facility granted by DBS Bank, Nam Cheong said.

On Sept 8, Nam Cheong's unit disposed of its office lots at Suntec Tower Three for S$25 million to a third party purchaser.

On Aug 15, Nam Cheong had submitted a written application to seek a waiver in relation to the proposed disposal in the event that it is aggregated with the proposed disposal of the company's property at Suntec Tower Three.

It received a letter of approval for the waiver application that shareholders' approval is not required for the proposed disposal of the Paya Lebar property and the Suntec disposal.