Real estate management group LHN is acquiring a property located at 55 Tuas South Avenue 1 for $21 million.
The property, consisting of an 11-storey industrial building, two part single-storey industrial factories, and a two-storey workers' dormitory, has a total gross floor area of 129,138 square feet. It sits on a piece of Urban Redevelopment Authority (URA) land measuring 51,655 square feet with a remaining lease of some 39 years.
The property is currently leased to two tenants for the provision of workers dormitory for a maximum of 64 and 73 workers respectively. Both tenancy agreements are for a duration of two years commencing from Jan 16, 2020, without any option to renew, and may be terminated by the landlord upon 30 days’ notice to the tenant.
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The property is a foreclosed property. DBS Bank, as the mortgagee, is exercising its power of sale to dispose of the property.
LHN intends to operate the Tuas South property to provide business spaces under the Business 2 zone for industrial developments, as well as a range of value-added logistics support services to its tenants.
As at 11.53am, shares in LHN are trading flat at 39 cents.
Photo: LHN Group
