P5 Capital Holdings has been granted an option to purchase the property at 39 Kaki Bukit Place, Singapore for a total consideration of $4.3 million.
The option, granted by Singapparel, was acquired for an option fee of $43,000 or 1% of the total consideration.
The property is a five-storey industrial building, with an approximate gross floor area of 13,110 square feet with a leasehold tenure of 60 years commencing on 20 November 1995.
SEE:Former executive director of P5 Capital Holdings ceases to be substantial shareholder
In a filing to SGX dated March 12, P5 Capital states that the acquisition is intended to consolidate and expand the company’s corporate office and other various units such as its energy business department, showroom, and warehouse, which are currently located at various premises around Singapore.
The acquisition is expected to be financed by internally generated funds and bank borrowings. Based on FY2020 ended December 2020 financials, the acquisition would increase the company’s gearing ratio from 0.07 times to 0.33 times.
The consideration of $4.3 million represents 17.82% of P5 Capital’s market capitalisation of $24.13 million as at the last market day preceding the date of the option.
Shares in P5 Capital closed flat at 3.4 cents on March 11.
