Engineering services provider Boustead Projects on Thursday said its unit entered into an agreement to sell property at 25 Changi North Rise in Singapore for S$10.5 million.
BP-UMS Pte, a wholly-owned subsidiary of the company, was granted a land lease of thirty years starting from February 2007 for Lot 4468K of Mukim 31 at 25 Changi North Rise by JTC Corp.
"Due to the relatively short land lease tenure remaining of approximately 20 years, the Company has decided that the proposed sale would be in its best interest and would allow redeployment of the consideration from the proposed sale for the purposes of investment and growth of the company's core businesses," it said in a statement.
The purchase Price is in line with an independent valuation obtained as at September 6 from TEHO Property Consultants Pte Ltd.
The completion of the proposed sale is conditional upon JTC's in-principle approval along with its confirmation that it has no objections with regards to the transfer of the property.
The property has a net book value of about S$4.5 million. The excess of the proceeds of the property over its net book value is about S$6.0 million.
The sale is due for completion during the financial year ending March 31, 2018.
The proposed disposal is expected to have a material positive impact on the earnings of the Boustead Projects.