Tat Hong gains A$6.7m from Australia property transaction

CRANE rental company Tat Hong Holdings has netted a gain of A$6.7 million (S$7.1 million) after a sale-and-leaseback transaction on four of its Australian properties.

The properties are sold by Tat Hong's 100 per cent-owned subsidiary Tutt Bryant Group, a general equipment rental firm, to Australian property developer and investor Primewest Funds for A$23.3 million.

Tutt Bryant will lease back the properties for 12 years at a total rental cost of A$1.91 million a year, subject to a fixed annual base rent adjustment and market rent reviews at intervals within the lease term.

Tat Hong closed at 72.5 Singapore cents a share, up a cent, before the transaction was announced.