Lincotrade and Associates Holdings BFT has successfully bid for a JTC Corporation property at 5 Tuas Avenue 12 with a tender price of $9.6 million.
On Jan 16, the company announced that its wholly-owned subsidiary had received a letter of award from JTC for the leasehold property with a tenure of 20 years commencing from March 26.
The property is a 2-storey factory with a land area of approximately 6,498.5 sqm and a gross floor area of approximately 5,490.4 sqm. Lincotrade intends to relocate its operations and dormitories to the Tuas property from its current premises at 39 Sungei Kadut Loop, the lease of which will expire on Feb 28.
Based on the Urban Redevelopment Authority (URA) circular dated Feb 10, temporary workers’ dormitories can be considered on the JTC property for up to 3 years, subject to relevant authorities’ approvals.
In addition, the company says larger premises of the JTC property is suitable for its existing operational needs and could also cater to the expected future increase in business activities.
The lease of the JTC property is subject to the conditions of tender published by JTC, which includes the installation of solar photovoltaic panels on the roof of the property, which Lincotrade has estimated to cost approximately $200,000.
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As such, the aggregate consideration for the proposed acquisition, including the cost of solar panel installation is currently estimated to be some $9.8 million.
Lincotrade intends to satisfy the tender price through a combination of internal resources and bank borrowings.
Shares in Lincotrade closed unchanged at 19.9 cents on Jan 16.
