GKE Corporation to acquire 2-storey property at 6 Pioneer Walk

It'll shell out S$32m.

According to a release, GKE Corporation Limited's subsidiary, GKE Private Limited, has on 17 May 2013 entered into a sale and purchase agreement with HSBC Institutional Trust Services Limited, in its capacity acting as trustee of Ascendas Real Estate Investment Trust for the purchase of the property located at 6 Pioneer Walk, Singapore 62775.

The Property is located at 6 Pioneer Walk, Singapore within the Jurong Industrial Estate. It is a 2-storey warehouse with a ramp-up driveway and a 4-storey ancillary office as well as a single storey workshop and a container yard with a gross floor area of 20,094 sqm.

The Property has a remaining lease term of approximately 23 years and this lease will be assigned to GKE upon completion of the Proposed Acquisition.

The Vendor has obtained in-principle approval from Jurong Town Corporation in respect of the assignment/transfer of lease for the Property.

The purchase consideration for the Proposed Acquisition is S$32,000,000. The Purchase Consideration is arrived on a “willing buyer willing seller” basis after taking into account, inter alia, the current market conditions and the selling price offered by the Vendor to the previous potential buyer.

The Property will provide the Group a ready warehouse space to meet its urgent and immediate needs.

Also, as the Group has been facing difficulties acquiring land parcels in the recent years, the Proposed Acquisition will allow the Group to capture the growth opportunities and higher yielding new business areas that will utilize the full value chain of the Group’s business.