An indirect wholly-owned subsidiary of TAN Chong International has issued a call option to a division of City Developments (CDL) to acquire its property, plant, and equipment located at Tan Chong Industrial Park for the sum of S$126.3 million. This was disclosed by the automobile dealer.
According to a filing with the ACRA, the probable buyer, CDL Aries, is held by CDL Constellation, which is a subsidiary of CDL.
Tan Chong Industrial Park will be entitled to an option fee of about S$6.3 million, which is equal to approximately 5% of the total consideration, in the event that CDL Aries decides to exercise the call option. The remaining S$120 million will be paid following the successful completion of the deal in Tan Chong Industrial Park.
The selling assets contain an aggregate site size of 16,630 square meters (sq m), the buildings on the site, as well as their permanent plant and equipment comprising all fixtures, elevators, and air conditioning units. These assets are located at 798 and 800 Upper Bukit Timah Road.
Tenancies that are now in place are scheduled to terminate on March 31, 2022, and come with an aggregate monthly rent of S$49,776.
Tan Chong projects that the profit from the assets before taxes will be S$559,900 for the year ending in December 2019 and S$359,228 for the year ending in December 2020.
Following the completion of the sale, the company anticipates realizing a gain in the amount of S$29.8 million in net proceeds. The company views the sale as a “excellent opportunity” for it to realize some of its investments and non-core assets.
It has the intention of using the revenues from the sale as operating capital in the future.
According to BT’s knowledge, CDL Aries was officially established as a property owner and developer on October 29th, 2021 after it was incorporated. Chia Ngiang Hong, general manager of CDL, and Gerald Yong Guo Yeou, whose LinkedIn page describes him as principal staff officer and head of business growth and investments, make up the company’s board of directors.
Tan Chong Industrial Park
An indirect wholly-owned subsidiary of TAN Chong International has issued a call option to a division of City Developments (CDL) to acquire its property, plant, and equipment located at Tan Chong Industrial Park for the sum of S$126.3 million.
Product SKU: Tan Chong Industrial Park
Product Currency: SGD
Product Price: 126300000
Product In-Stock: InStock