Soon Hock Enterprise Holding Limited Announces Proposed Disposal of Industrial Property for S\$1.5 Million

Key Highlights

• Transaction: Soon Hock Enterprise Holding Limited, through its wholly-owned subsidiary Soon Hock Property Development Pte. Ltd., has granted an option to Bright Oasis Pte. Ltd. (and/or its nominee) for the proposed sale of a leasehold property located at 8 Kaki Bukit Avenue 4 #03-06, Singapore 415875.
• Property Details: The property is a 60-year leasehold (lease commenced on 15 December 2010), and is one of two properties recently valued by Savills Valuation and Professional Services (S) Pte. Ltd.
• Purchaser: Bright Oasis Pte. Ltd. is not related to the Company’s Directors, controlling shareholders, or their associates, ensuring an arm’s-length transaction.
• Option Timeline: Purchaser must exercise the option before 4:00 p.m. on 27 November 2025.

Transaction Rationale

The Board considers the disposal a strategic move, allowing the Group to realise a gain on disposal and unlock additional working capital for ongoing operations. This divestment opportunity comes amid prevailing market conditions that support the sale at the independently appraised value.

Financial Details

• Sale Consideration: S\$1,500,000 (exclusive of GST at prevailing rates).
• Payment Structure:
  • Initial deposit (Option Money): S\$15,000 (1% of consideration) + S\$1,350 GST, already paid.
  • Further deposit (upon option exercise): S\$60,000 (4% of consideration) + S\$5,400 GST.
  • Balance (on Completion Date): S\$1,425,000 (95% of consideration) + applicable GST.
• Valuation: Independent valuer Savills recommended a market value of S\$1,500,000 for the property as of 31 March 2025, confirming the sale price aligns with market expectations.
• Book Value: As of 31 March 2025, the property’s book and net tangible value was approximately S\$1,114,640.78.
• Gain on Disposal: The Group expects to report a net gain of approximately S\$385,359.22 upon completion of the sale.
• Completion Date: The sale is set to complete within 16 weeks + 3 days from the date the option is exercised.

Impact on Shareholders and Share Price Sensitivity

• Regulatory Treatment: The transaction qualifies as a non-discloseable transaction under the SGX-ST Listing Manual, as the absolute relative figures are below the 5% threshold. No shareholder approval or further announcement is required under Chapter 10.
• Financial Impact: The disposal is not expected to have any material impact on the Group’s earnings per share or net tangible assets for the financial year ending 31 December 2025.
• Price Sensitivity: While the transaction is modest relative to the Group’s size, it does unlock working capital and realises a gain, which may be viewed positively for liquidity management and asset efficiency. However, the quantum is not material enough to warrant significant share price movement unless coupled with further strategic disposals or announcements.
• Inspection Rights: Interested parties can inspect the Option document at the Company’s registered office for three months from the announcement date.

Other Notable Points

• Maybank Securities Pte. Ltd. and United Overseas Bank Limited are acting as Joint Issue Managers, Coordinators, and Bookrunners for the Company’s IPO but do not assume responsibility for the contents of this announcement.

Conclusion

Soon Hock Enterprise Holding Limited’s proposed disposal of the Kaki Bukit property is a clear example of proactive asset management aimed at improving liquidity and realising asset value. The transaction is structured to ensure transparency and fair value, with minimal regulatory burden and negligible impact on shareholder equity in the near term.

Shareholders should note: While this disposal represents prudent financial management, its scale relative to the Group’s overall operations means it is unlikely to be a significant share price mover in isolation. Investors may wish to monitor for further asset divestments or capital deployment updates which could be more material for valuation.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence or consult a qualified financial advisor before making investment decisions. The information provided is based on public disclosures as of the date stated and may change without prior notice.

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