Date: 25 September 2024
Broker: Maybank Research Pte Ltd
Property Sale Proposal
Sanli Environmental has proposed the sale of a leasehold property located at 28 Kian Teck Drive. The sale price for the property is SGD5.28 million, and the buyer is an independent third party, EDZ Interior Contracts. As part of the agreement, 1% of the purchase price, amounting to SGD52,828.28, is payable upon the grant of the option. An additional 4% deposit, equating to SGD211,313.13, will be paid when the option is exercised, with the remaining 95% due upon completion of the transaction.
Rationale for the Sale
The primary reason for the sale is the inability of the property to accommodate Sanli Environmental’s expanded operations due to limited space. The property no longer meets the company’s operational needs, necessitating the divestment.
Positive Cash Flow Impact
Upon completion of the sale, Sanli Environmental is expected to generate a positive cash flow of SGD5.22 million, which will significantly improve the company’s liquidity. The proceeds from the sale will allow the group to reallocate resources more efficiently, optimizing the utilization of its assets.
This information is based solely on the details provided in the PDF dated 25 September 2024.
