Nanofilm to purchase property in Tai Seng Drive for S$30.38m

NANOFILM Technologies on Friday said that it has exercised an option to purchase (OTP) to buy a property along Tai Seng Drive for S$30.38 million.

A check on property portal 99.co revealed that the property, at No. 11 along the road, is a six-storey stand-alone warehouse.

Nanofilm said the OTP was granted by the vendor, G.W.T International. The consideration was arrived at after arm's-length negotiations, and on a willing-buyer-willing-seller basis, and after taking into consideration the valuation of the property carried out by an independent third-party valuer commissioned by the company, Real Estate Analytics.

The valuation report pegged the market value of the property at S$30.5 million as at March 15. This constituted less than 1 per cent of Nanofilm's market capitalisation as at April 8.

The consideration is payable in cash and will be funded by both internal funds and bank borrowings, said Nanofilm.

Under the terms of purchase, 1 per cent of the consideration is payable on the grant of option by the vendor, and 4 per cent upon the exercise of the option by the company. The remaining 95 per cent of the consideration is payable upon completion of the sale and purchase of the property.

Nanofilm said the proposed acquisition is not expected to have a material impact on the consolidated net tangible assets per share or earnings per share of the group for the financial year ending Dec 31.

Shares of Nanofilm closed at S$5.13 on Friday prior to the announcement, down 0.8 per cent or S$0.04.