MMP Resources forges lease deal with Japan's JRT Trading

The group may also buy the leased properties for $1.04m.

Mainboard-listed construction company MMP Resources Limited decided to rent some of the premises of JRT Trading instead of buying the entire issued share capital of the Japanese company.

According to MMP Resources, it signed a five-year non-binding fixed term lease agreement with JRT to redevelop buildings in Hokkaido. There is an option to purchase the leased premises at a pre-determined price of S$1.04 million or ¥80 million.

“The leased premises consist of both office and residential buildings which are located at prominent, high traffic location based in Higashiyama, a town located in Niseko, Abuta District, Shiribeshi Subprefecture in Hokkaido, Japan,” said MMP Resources.

The group incorporated a wholly-owned Japanese entity, MMP Resources Japan K.K., to comply with Japanese and Singapore accounting standards and will hold and receive funds in Japanese Yen.

The lease agreement will commence on 1 April 2017. It will allow the redevelopment of buildings to house high value global brand tenants which operate within the lifestyle and aspirational retail space, MMP Resources added.