Regional MRO solutions provider for offshore, oil & gas and marine sector Mencast Holdings is set to dispose of its property at 7 Tuas View Circuit for $13.5 million.
This comes after its wholly-owned subsidiary, Mencast Marine, granted an independent third party an option to purchase the property, with the sale conditioned upon the approval of JTC, among others.
With a land area of 8,501.20 sq m, the 30-year leasehold property has a floor area of 8,685.93 sq m and is currently used by the group to house Mencast Marine’s operations. It has also been mortgaged to United Overseas Bank Limited.
In an SGX filing, Mencast revealed that the consideration is lower than the property’s $16.3 million valuation, but higher than its $13 million forced sale valuation.
In fact, the consideration is the only offer received for the property since Mencast Marine began accepting offers in April 2018.
It added that the disposal is part of the group’s “on-going debt restructuring exercise which encompasses inter alia the disposal of under-utilized and/or non-core assets by way of a straight sale”.
Mencast intends to use the $13.3 million net proceeds to “repay the outstanding bank borrowings obtained from UOB in connection with the property and to discharge the mortgage, thereby helping to reduce the group’s accrued and future interest payable.”
“Any remainder will be applied towards the on-going debt restructuring exercise in accordance with the terms of the Debt Restructuring Agreement,” it added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org