Reclaims Global Limited Announces Strategic Acquisition of Freehold Commercial Property Near Farrer Park MRT Station for S\$38.8 Million

Key Highlights

• Acquisition Details: Reclaims Global Limited (“Reclaims Global”), listed on SGX-Catalist, has signed a sale and purchase agreement to acquire Lasidon Holdings Pte Ltd, the registered proprietor of a freehold commercial property located at 291 Serangoon Road, Singapore 218107. The acquisition price is S\$38.8 million.
• Prime Location: The property is a prominent corner building, just a 3-minute walk from Farrer Park MRT station. It is surrounded by high-traffic amenities including City Square Mall and Farrer Park Hospital, positioning it in a vibrant, well-connected district with strong footfall and visibility.
• Property Specifications: The building is six storeys high, features a basement carpark, and offers a gross floor area of 506.8 square meters. It boasts a 35-metre dual road frontage, enhancing its accessibility and appeal for both tenants and investors.
• Redevelopment Plans: Reclaims Global intends to redevelop the property to improve building efficiency and increase the net lettable area. This is aimed at maximizing rental income and unlocking greater value for shareholders through capital appreciation.
• Investment Strategy: The company plans to hold this property as a long-term investment, seeking to benefit both from capital gains and rental income streams. The strategic location and redevelopment potential are expected to generate significant returns.
• Management Commentary: Mr. Tan Kok Huat, Executive Director and CEO, stated that this acquisition is a “strategic investment,” strengthening the Group’s long-term resilience and unlocking future growth opportunities. The high-visibility asset is positioned to deliver attractive long-term potential.

Implications for Shareholders & Potential Price Sensitivity

• Growth Catalyst: The acquisition represents a notable development for Reclaims Global, signaling a shift towards property investment and redevelopment. This strategic expansion could materially impact future earnings and asset value, serving as a potential catalyst for share price movement.
• Capital Deployment: The significant investment of S\$38.8 million marks a major capital allocation. Shareholders should monitor the financing structure of this acquisition and its impact on the company’s balance sheet, as well as future announcements regarding redevelopment progress and rental income streams.
• Long-Term Asset Value: The freehold status of the property, central location, and redevelopment plans are likely to enhance the Group’s asset portfolio, supporting sustainable growth and shareholder value creation.
• Sector Positioning: The move complements Reclaims Global’s existing integrated service model in the construction sector, potentially opening new business avenues in property management and investment.
• Regulatory Note: The press release has been reviewed by the Company’s sponsor, SAC Capital Private Limited, but has not been examined or approved by the SGX-ST, which assumes no responsibility for the contents.

About Reclaims Global Limited

Listed on the SGX-Catalist since March 2019, Reclaims Global is an eco-friendly integrated service provider within Singapore’s construction industry. The Group specializes in excavation, demolition, building construction solutions, fleet management of construction vehicles and equipment, and recycling of construction and demolition waste. Its business spans three core segments: excavation services, logistics and leasing, and recycling. Since its founding in 2009, the Group has built a strong reputation for reliable execution and timely delivery across diverse construction projects.

Investor Relations

For media and investor queries, contact:
Mr. Alex Tan
Mobile: +65 9451 5252
Email: [email protected]
More information is available at the corporate website: https://reclaims-enterprise.com/

Conclusion

The acquisition of the freehold commercial property at Serangoon Road marks a significant strategic move for Reclaims Global Limited. The potential for redevelopment and increased rental revenue, coupled with the property’s prime location, makes this announcement materially relevant for investors. Shareholders should closely monitor subsequent updates regarding redevelopment plans, financial impact, and rental yield projections, as these could directly influence the company’s future earnings and share price performance.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investors are advised to conduct their own due diligence and consult with professional advisors before making investment decisions. The information contained herein is based on publicly available data and company announcements as of the stated release date and may be subject to change.

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