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Nam Lee buys 4 Gul Way property as new headquarters for S$18m
NAM Lee Pressed Metal Industries on Monday evening said it has entered into a property sale agreement to acquire the leasehold interests in the whole of 4 Gul Way from an unrelated party, National-Oilwell, for S$18 million.
The fabricated metal producer and supplier intends to use the property as its new headquarters - as the lease for its existing head office will expire in 2025 - and house production facilities that will support the group's current core business.
The board of directors considers the acquisition to be in the interests of the group, primarily because the 4 Gul Way property has a more accessible location and larger gross floor area than the current head office.
The leasehold property comprises three plots of land spanning a total land area of 40,000 square metres (sq m), with a gross floor area of 19,000 sq m.
Subject to the terms and conditions of the JTC leases for the property, the aggregate of its initial and further leasehold term is up to 2048.
Nam Lee's board believes the acquisition will strengthen the group's operations and allow it to remain competitive.
The S$18 million purchase price was arrived at after arm’s length negotiations between Nam Lee and the seller National-Oilwell, taking into account the indicative market value of the property based on independent sources, among other factors.
The sum will be funded by a combination of internal resources and bank borrowings, Nam Lee said.
The completion of the acquisition will take place on the later of 12 weeks from June 22, or four weeks after Nam Lee receives notice that National-Oilwell has satisfied all conditions precedent.
Shares of Nam Lee were flat at 31.5 Singapore cents as at 9.02am on Tuesday.