Ember Properties, the associated company of OneApex Limited, has exercised an option to purchase a freehold industrial property on 7 Kim Chuan Lane for a consideration of $17 million.
The property has a land size area of around 10,506 sq ft and is zoned “Commercial/Industrial”. It is located within close proximity to the Ubi and Tai Seng area.
The property is sold subject to an existing tenancy for the use as a warehouse, factory and ancillary office for engineering-related activities.
As at June 1, Ember Properties has paid $850,000 to the vendor which comprises the option fee of $280,000 and 5% of the consideration payable upon the exercise of the option.
The balance of $16.15 million will be paid upon the completion of the acquisition of the land, which is expected to take place within five months from the date of exercise of the option.
Ember Properties is a real estate development company incorporated on Feb 23 and is wholly-owned by OneApex.
In connection with the acquisition of the property, A38 Capital had subscribed for eight new ordinary shares in Ember Properties for $8, following which, the latter now has a total issued and paid-up capital of $10 comprising 10 shares.
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Under the A38 subscription, Ember Properties is a joint investment between OneApex Development (OAD), a wholly-owned subsidiary of OneApex and A38. OAD holds 20% of Ember Properties’ shares, while A38 holds the remaining 80%.
Following the completion of the A38 subscription, Ember Properties has become an indirect associated company of OneApex.
A38 is a private company limited by shares and incorporated on Jan 5 as a holding company. As at June 2, A38 has a total of 3 shares; its shareholders and directors being Tan Koo Chuan, Tan Pei Hong, Alex and Tan Theng Hong, Amos.
Alex and Amos are each controlling shareholders of OneApex, while Alex is the executive director and CEO of OneApex. Koo Chuan is their father.
Alex is also the director of Ember Properties, along with Chiu Joon Sun.
As the joint investment is entered into between OAD and A38, the move constitutes an interested person transaction.
According to OneApex via a filing on June 1, Ember Property intends to either redevelop the property into halal food factory units for sale or rent, or it may sell the property to a third party for capital gains in future.
“Given the scarcity of freehold industrial properties in the property market, the board is of the view that there is potential for the property to generate substantial capital gains over time, whether by way of redevelopment or resale to a third party purchaser,” says the company.
Shares in OneApex closed 0.1 cent higher or 0.6% up at 16.1 cents on June 1.
