Sysma Holdings acquires investment holding company De Paradiso

Acquisition marks Sysma's first venture into property development.

In a disclosure to the Singapore Exchange, the Catalist-listed Sysma Holdings Limited announced it has entered into a Sale and Purchase Agreement to acuire the entire issued and paid-up share capital of De Paradiso Development Pte Ltd.

De Paradiso is a private Singapore-incorporated investment holding company which owns two plots of land located at Serangoon. It is Sysma's intention to obtain the ownership of these two plots of land through the acquisition. De Paradiso has proposed to develop a cluster housing development comprising 18 units of three-storey terrace houses with basement car parks and communal facilities, and two units of three-storey semi-detached houses with attic. The proposed acquisition by Sysma is on the condition that De Paradiso holds the two plots of land and development rights.

The total purchase for the proposed acquisition of De Paradiso as announced earlier is S$35m, which includes the assumption of Sysma of S$21.975m bank loans secured against the two plots of land. The total purchase for the proposed acquisition of the 100 per cent equity interest of De Paradiso is S$13.025m which comprises S$1m for the entire share purchase and the remaining S$12.025m for the full repayment of the shareholder's loan. The purchase will be funded through internal funds and/or bank borrowings. The acquisition was arrived on an arm's length and on a willing buyer willing seller basis.