Singapore Kitchen Equipment to buy industrial building for S$6.1m

SINGAPORE Kitchen Equipment  has exercised its option to purchase a freehold 3-storey industrial building for S$6.1 million in cash through its wholly-owned subsidiary Q'son Kitchen Equipment, announced the Catalist-listed group in a filing on Monday (Nov 8).

The option was first granted to Q'son on Oct 28, 2021 after the company paid S$61,000 or 1 per cent of the total consideration to the property's vendor, EAC Corporation.

Singapore Kitchen on Nov 8 announced it paid a further S$244,000 or 5 per cent of the consideration, pending completion of its proposed acquisition.

The group intends to finance the remainder of the consideration through internally-generated funds and bank borrowings.

Located at units #01-01 and #03-01 of 207 Henderson Road in Henderson Industrial Park, the property spans 788 square metres.

Singapore Kitchen intends to use this venue to house its consolidated business operations, comprising a showroom and live demo kitchen as well as the group's corporate office and various departments.

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The group believes this centralisation will enhance management and oversight, increase operational synergies and efficiencies, and facilitate greater interaction among its staff.

In its Oct 28 filing, Singapore Kitchen said the property was "highly sought after" due to a scarcity of units in the market for sale.

It also highlighted the building's freehold status, good transportation network and central location.

The group does not expect a material effect on its earnings per share or net tangible assets on a pro forma basis for the financial year ended December 2020.

Trading of Singapore Kitchen Equipment shares has been suspended since Aug 2, 2021.

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