Nam Cheong to buy office space at Suntec Tower Three for $30.3m

OFFSHORE vessel builder Nam Cheong is buying office space at Suntec Tower Three to house its Singapore corporate office for a price of about $30.3 million.

In a regulatory filing yesterday, it said its wholly owned subsidiary Nam Cheong Offshore has been granted an option-to-purchase (OTP) for three office lots (units #41-01 to #41-03) at Suntec Tower Three from an unrelated party: Vista Realty.

The total floor space to be purchased is about 10,097 square feet and the property will have a lease that runs until Feb 29, 2088. Nam Cheong expects to use the premises for its corporate office in Singapore, after existing leases at the three lots expire between Sept 14 next year and Jan 15 in 2016.

The consideration of $30.3 million accounted for the current market conditions, location of the premises and property prices in the surrounding area, Nam Cheong said. No valuation report was commissioned for the acquisition.

Nam Cheong Offshore has paid the option cost of about $303,000 and is expected to exercise it by paying a deposit of $2.7 million by 4pm on Friday. These two payments work out to 10 per cent of the purchase price of the property, with the remaining 90 per cent to be paid within 10 weeks of exercising the option.

The acquisition will be funded through internal resources, and is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the company for the current financial year ending Dec 31.

Shares in Nam Cheong closed 1.8 per cent higher yesterday at 28.5 cents.

Source: Business Times, 16 Oct 2013