Best World International disposes two properties at 37 Kallang Pudding Road

Cash sale proceeds amounting to nearly S$3m.

In a disclosure to the Singapore Exchange, Best World International Limited announced that it has entered into two Option To Purchase Agreements on 16 November 2012 with Rapid Effect Pte Ltd, an unrelated party, to dispose of two units of the properties owned by the Company located at 37 Kallang Pudding Road, #05-03 & #05-04, Singapore 349315 for a total cash consideration of $2,960,880. The option was exercised by the Purchaser on 30 November 2012. 

Best World has owned the Properties since 1994 and these are currently utilised as a storage facility.

Best World said that according to a valuation report dated 6 November 2012 issued by DTZ Debenham Tie Leung (SEA) Pte Ltd had valued the Properties at S$2.825 million. The net gain on the disposal of the Properties will be approximately S$1.836 million based on the book value of the Properties and after taking into consideration certain expenses such as taxes and fees incurred in relation to the disposal.

The company gave three primary reasons for pushing through with the disposal:

- it found the selling price of the properties attractive, taking into consideration the current uncertainties in the global economy which further dampens the possibility of finding a lessee for the properties;

- the selling price, which is significantly higher than the original purchase price, presents a good opportunity to realise the gain from the appreciation of the properties; and

- the sales proceeds from the disposal would strengthen the Group’s cash position

The proceeds of the disposal of the Properties will be used for the business of the company.