Yahoo Finance Vicom wins tender for lease of land parcel at Jalan Papan for $7 mil
The land will be used for activities such as testing; it will eventually replace the JIC Inspection Centre at Pioneer.
Vicom, Singapore’s largest vehicle inspection company, has been awarded a tender for the lease of a land parcel situated at Jalan Papan (Plot 2) at a tender price of $7 million.
The tender, which has a lease term of 20 years, was awarded by the Jurong Town Corporation (JTC).
The site area of the land parcel measures 12,400.4 sqm (133,476.8 sq ft), with the land zoned for industrial use.
Vicom’s wholly-owned subsidiary, Setsco Services, will develop the land parcel. Upon the completion of the development, the land parcel will be used for testing, inspection and certification activities. It will also eventually replace the JIC Inspection Centre at Pioneer, whose lease will be expiring in November 2024.
The JIC Inspection Centre is owned and operated by Vicom’s 78%-owned subsidiary, JIC Inspection Services Pte Ltd.
Of the tender price, 25% (minus the tender deposit of $350,000, which was already paid) is payable by Jan 5, 2023. The remaining 75% balance is to be paid by March 8, 2023.
According to Vicom, the tender price was arrived at after factoring in the successful tender prices for the last three tenders for the lease of land parcels by JTC.
The payment of the tender price will come from internal resources. It is not expected to have any material impact on Vicom’s net tangible assets (NTA) or earnings per share (EPS) for the FY2022 ending Dec 31.
Shares in Vicom closed flat at $1.93 on Dec 21.
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