SINGAPORE (June 4): LHN, the real estate management group, announced Thursday, is setting up a joint venture with car fleet rental company Lion City Rentals (LCR), to acquire and operate a JTC industrial property (JV Property) at Toa Payoh West for $3.2 million.
LHN’s indirect wholly-owned subsidiary WPS on June 3 entered into a joint venture agreement with LCR, as well as Motorway Automotive (JV Company).
Motorway Automotive was incorporated on Aug 19, 2019 with an initial issued share capital of $100 comprising 100 shares, which were wholly-owned by LCR. The JV Company was intended to acquire and run the JV Property as part of the industrial property portfolio under the space optimisation business of the group. It will be accounted for as an associate of the group.
Upon the signing of the agreement, both WPS and LCR injected $80,000 for 80,000 shares, and $119,000 for 119,000 shares into the JV Company respectively. WPS now owns a 40% stake in the JV Company.
Under the terms of the agreement, WPS will manage the JV Property as storage of cars, spare parts, vehicle inspection (without servicing and repair activities) and ancillary office. WPS will be paid monthly charges at 10% of JV Company’s monthly revenue. JV Company will also bear the costs related to the day-to-day running and operation of the JV Property.
As at 9.31am, LHN shares are trading flat at 10 cents.
