Vibrant Group’s S\$12 Million Changi South Property Disposal Faces Completion Delay with Buyer Paying Extra Interest

Key Points Investors Must Know

• Completion of S\$12 Million Property Sale Delayed: Vibrant Group Limited’s disposal of 47 Changi South Avenue 2, Singapore, will not be completed on the original schedule. The buyer requested to extend the completion date from 4 November 2025 to no later than 3 February 2026.
• Extra Payment & Interest Imposed: To secure the extension, the buyer has paid a non-refundable additional 10% of the full purchase price (plus GST) as of 31 October 2025.
• Interest Cost to Buyer: The buyer must pay a 6% per annum interest on the remaining balance of S\$12,000,000, calculated from 4 November 2025 until actual completion (latest by 3 February 2026).
• JTC Confirmation Received: The transaction was able to proceed after receiving JTC’s Letter of Confirmation of Exit Environment Site Assessment on 23 September 2025.
• Amendments to Contract Terms: The above conditions are additional terms to the previously agreed option, strictly for amending the completion date.
• Ongoing Updates Promised: The company will continue to update shareholders upon material developments.

What This Means for Shareholders and Market Impact

The delayed completion of this significant property disposal introduces both risks and opportunities for Vibrant Group shareholders. While the delay means the company will not immediately realize the full S\$12 million cash inflow, the new terms require the buyer to pay a substantial non-refundable sum upfront (10% of the purchase price plus GST), providing some liquidity and security for the group.

More importantly, the imposition of a 6% annual interest on the S\$12 million balance could result in additional income for Vibrant Group, depending on how long the completion is delayed. This compensates partially for the time value of money lost due to the extension, but it also signals the buyer may have encountered financing or operational hurdles.

The fact that the buyer was willing to pay extra and accept a significant interest charge suggests strong intent to complete, which may reduce risk of deal failure. However, investors should be aware that any further delays or non-completion could negatively impact the group’s cash flows and financial performance. The company’s ability to enforce these terms and secure payment is crucial.

Potential Price Sensitivity

• The property disposal is a material transaction for Vibrant Group, affecting both financial position and strategic direction.
• Delays, extra payments, and interest charges will impact cash flow timing, and could affect market perceptions of management execution and operational risk.
• The outcome may move the share price depending on whether the deal completes successfully, the timing of cash inflows, and any changes in risk profile.

Summary

Vibrant Group Limited has agreed to a buyer-requested delay for the S\$12 million disposal of its Changi South property, receiving a non-refundable advance and imposing a 6% interest on the balance. Investors should monitor for further updates, as this news could affect liquidity, earnings, and ultimately, the share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions regarding Vibrant Group Limited or related securities. The views expressed are based on the latest public information and may change as new data emerges.

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