Nam Cheong granted option to purchase office property for S$30m

Site of Group's new corporate office.

The Board of Directors of Nam Cheong Limited (Nam Cheong) announced that its wholly-owned subsidiary, Nam Cheong Offshore Pte Ltd (NCO) has been granted an Option to Purchase from an unrelated party, Vista Realty Pte Ltd, a private limited liability company incorporated in Singapore to acquire the office lots located at Unit #41-01, Unit #41-02 and Unit #41-03 of 8 Temasek Boulevard, Suntec Tower Three, Singapore.

The Option is granted to NCO and/or its nominee. The Company intends to incorporate a new subsidiary to be the registered owner of the Property. The Company will be making appropriate announcements in due course on the incorporation of the new subsidiary.

The total purchase consideration for the Property is S$30,291,000 which was arrived at on i) an arm’s length negotiations between NCO and the Seller, and ii) a ‘willing buyer willing-seller’ basis, taking into account of the current market conditions, location of the Property and property prices within the surrounding area.

No valuation report on the Property has been commissioned by the Company for the purposes of the Acquisition.

The Property has a total floor space of approximately 10,097 square feet and a leasehold term which will expire on 29 February 2088.

NCO has paid to the Seller the option money of S$302,910 (being 1% of the Consideration). Pursuant to the Option, the Option is to be exercised on or before 4 p.m. on 18 October 2013 by payment of the deposit of S$2,726,190 (being 9% of the Consideration). The remaining balance 90% of the Consideration shall be paid by NCO and/or its nominee to the Seller within 10 weeks from the date of the exercise of the Option.

The Group intends to fund the Consideration for the Acquisition through internal resources.

The Property, if acquired, will be subject to the existing tenancies, which will expire between 14 September 2014 and 15 January 2016. The Property will be used as the corporate office of the Group in Singapore after the expiry of the existing tenancies.

The above acquisition is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the Company for the current financial year ending 31 December 2013.