XMH Holdings acquires JTC-owned land for production, warehousing expansion

S$68.4m cost of investments estimated.

Based on a note to the Singapore Exchange, XMH Holdings said it plans to purchase JTC land located at Private Lot A3001874 at Tuas Bay Drive and has an area of approximately 15,184 square meters. The land is to be developed to a minimum gross floor area at the gross plot ratio of not less than 2.47 but not more than 2.50.

XMH Holdings said that cost of investments for the proposed acquisition is currently estimated to be S$68.4 million, comprising: Land Premium estimated at S$8,138,624.00 (based on a rate of S$536.00 per square metre), the estimated costs of the Building Works of S$51.0 million and the estimated costs acquiring new plant and machinery of S$9.3 million.

The consideration will be satisfied entirely in cash.

XMH Holdings said it intends to acquire and develop new premises to increase the size of its work areas as well as to establish an assembly line for our in-house brand of power generating sets. The Group also intends to develop the new premise for our general warehousing needs.

S$10.0 million from the net proceeds from the Company’s initial public offering has been allocated to partially fund the proposed acquisition. The Group intends to finance the remaining costs of the proposed acquisition by bank borrowings, its existing working capital and/or proceeds from fund raising exercises (if any) from the equity market. 

"The Proposed Acquisition is a strategic step towards implementing and achieving the Group’s various business expansion plans. It is the Group’s intention to acquire and develop new premises to increase the size of its work areas, to accommodate new assembly and production lines and increase general warehousing capacities," said XMH Holdings in further explaining the rationale behind the purchase.

"The Group will thereby be able to continue to enhance its in-house expertise and capabilities to provide value-added and wider range of products and services to its customers. The Proposed Acquisition is therefore in line with Group’s business and expansion plans," it added.