A wholly-owned subsidiary of Catalist-listed Sanli Environmental Limited 1E3 has proposed to divest its leasehold property at 28 Kian Teck Drive for $4.95 million, owing to the group’s expansion.
According to an Aug 2 bourse filing, Sanli M&E Engineering has granted an option to purchase to a company named Global Training Services. “The purchaser is an independent and unrelated third party and has duly exercised the option on Aug 2.”
The property has leasehold tenure of 30 years commencing from Jan 1, 2012. The property comprises office and workshop space, with a gross floor area of approximately 1,982.4 sq m and is currently occupied by the Sanli Environmental group for its own use.
The company had appointed United Valuers & Consultants to conduct an independent valuation on the property, which reported on June 22 that the open market value was $4.95 million.
Based on the property’s audited net asset value of approximately $3.295 million as of March 31, the proposed disposal is expected to result in a gain on disposal of approximately $1.655 million. The proposed disposal will result in a positive cash inflow of $4.851 million, says the group.
In June, the group acquired 22 Chin Bee Drive from ESR-LOGOS REIT for $13.8 million to consolidate its corporate office and workshops and house the company’s foreign workers
See also: Sanli Environmental acquires ESR-LOGOS REIT’s property at 22 Chin Bee Drive for $13.8 mil
In May, Sanli Environmental reported earnings of $4.3 million for its FY2023 ended March, up 138% y-o-y.
Revenue for the year increased by 64.6% to $106.4 million. This is attributable to the 78.1% y-o-y increase from the engineering, procurement and construction (EPC) segment and 20.6% y-o-y increase from the operations and maintenance (O&M) segment.
Earnings per share for the year stood at 1.63 cents. The group proposed a first and final dividend of 0.768 cents per share.
Shares in Sanli Environmental closed 0.3 cents lower, or 2.65% down, at 11 cents on Aug 2.
