Nam Cheong Limited (Nam Cheong) has put up its three office lots at Suntec Tower Three, 8 Temasek Boulevard, for sale for $25.04 million.
With a gross floor area of about 938 sq m (10,097 sq ft), the Suntec property has a 99-year lease that started on 1 March 1989. Hence, it currently has a remaining lease period of 70 years and six months.
In an SGX filing, the company revealed that it had initially intended to use the property as the group’s corporate office. However, it subsequently decided to continue to lease the property to third parties to obtain rental income.
Nam Cheong is currently restructuring its business in light of the downturn in the oil and gas industry.
“Although the proposed disposal will be a loss on disposal, the board has considered and resolved that the proposed disposal will be in the commercial interests and benefit to the group as all proceeds from the proposed disposal will be applied towards settlement of outstanding amount under a credit facility granted by DBS Bank Limited and secured by the Suntec Property,” it said.
“This will reduce the group’s current financial liabilities and borrowings in light of the on-going discussions in relation to the proposed debt restructuring.”