SINGAPORE (June 9): Polaris on Tuesday announced that it has entered into an option agreement to sell its investment property at 81 Ubi Avenue 4 #03-14 UB.One Singapore to Asia Ticketing for $700,000.
The property was purchased by Polaris in 2012 to enable its then-planned business expansion. The tenure of the land is 60 years as at Dec 31, 2008. The property is currently leased to an unrelated third-party (the tenant) to generate rental income.
According to an SGX filing on Tuesday, the property has been leased out since September 2019, and is no longer needed by Polaris. It also said that the proposed sale will be in its “best interests”.
The company is said to make a net profit of $89,000 on the proposed sale.
Upon the completion of the sale, Polaris will assign its landlord rights and obligations to Asia Ticketing.
Polaris says the sale price was arrived at based on arm’s length negotiations, after taking into account prevailing property market conditions in the area, and the market value of the property.
No valuation of the property was commissioned by Polaris due to publicly available market prices.
The sum of the price will be paid to Polaris in three ways. The first, an initial deposit of $7,000, which is equivalent to 1% of the sale price, has been paid upon the signing of the option agreement.
A further deposit of $28,000, which is equivalent to 4% of the sale price, will be paid upon the exercise of the option.
The balance of $665,000, will be payable upon the date of completion of the proposed sale.
The completion of the proposed sale shall take place within 12 weeks from the date of the exercise of the option.
Shares in Polaris closed flat at 0.3 cents on Tuesday.
