ISOTeam Ltd. Announces Strategic Acquisition of Loyang Way Property for S\$5.69 Million

Key Highlights

• Acquisition of Industrial Property: ISOTeam Ltd.’s wholly-owned subsidiary, ISOTeam Loft Pte. Ltd., has exercised an option to purchase an industrial property at 68 Loyang Way for S\$5,688,000.
• Attractive Valuation: The purchase price is at a 9.71% discount to an independent valuation of S\$6,300,000.
• Expansion of Operational Capacity: The property acquisition aims to address expected expansion needs due to increased ongoing and upcoming projects and to optimise accommodation costs.
• Potential Conversion to Dormitory: ISOTeam plans to explore converting part of the property into a factory-converted dormitory with a capacity for 200 to 400 beds, potentially saving on foreign worker accommodation costs.
• Financial Impact: The move has minimal impact on net tangible assets and earnings per share, and does not affect ISOTeam’s issued share capital.
• Discloseable Transaction: The transaction is classified as a “discloseable transaction” under the SGX Catalist Rules, with a relative size of 8.77% based on market capitalization.

Details of the Acquisition

On 13 February 2026, ISOTeam Ltd. announced that its subsidiary, ISOTeam Loft Pte. Ltd., has accepted and exercised an option to acquire a factory property at 68 Loyang Way, Singapore 508758 from Sercel Singapore Private Ltd. The total land area is approximately 6,214 sqm with a gross floor area of 4,333.59 sqm. The property is a part 1/part 2-storey single-user JTC factory, with a remaining leasehold of about 12 years (expiring on 6 November 2037). The premises have already been vacated, facilitating a smooth handover.

Strategic Rationale

The acquisition is strategically motivated by anticipated operational requirements arising from ISOTeam’s pipeline of construction projects across Singapore. The company foresees that its current premises may not suffice to support ongoing and future operations. Furthermore, ISOTeam plans to examine converting part of the property into a dormitory for 200–400 workers, yielding significant cost savings on accommodations for foreign staff and providing extra parking space for its fleet.

Notably, the property has undergone substantial addition and alteration works in 2008 and is in an average state of repair. It is already fitted out with internal accommodation, which can be repurposed, potentially reducing renovation costs for ISOTeam. The acquisition is also seen as a platform for exploring new business opportunities at the site.

Valuation and Purchase Terms

The purchase price of S\$5,688,000 was agreed on a willing-buyer-willing-seller basis and will be funded via internal resources and financing. Colliers International Consultancy & Valuation (Singapore) Pte Ltd valued the property at S\$6,300,000 using the Direct Comparison Method, based on an inspection dated 3 February 2026. The purchase, therefore, represents a discount of about 9.71% to the independent valuation.

Payment terms include:

• 1% option fee (S\$56,880) paid on option grant;
• 4% (S\$227,520) paid upon exercise of the option and held by Vendor’s solicitors as stakeholders;
• 95% balance (S\$5,403,600) due on completion.

Completion is subject to several conditions, including approval from JTC and other authorities, satisfactory legal requisitions, and approvals or novation under a solar power purchase agreement with Keppel EaaS Pte. Ltd. If approvals are not secured within 8 months, either party may rescind, and all monies paid will be refunded without interest or penalty.

Financial Effects

The pro forma financial effects are minimal, with NTA per share and EPS per share virtually unchanged. The acquisition does not impact the company’s share capital.

SGX Catalist Rules and Shareholder Implications

The relative size of the transaction, at 8.77% of market capitalization (S\$6,016,000 consideration vs. S\$68.6 million market cap), means the deal qualifies as a “discloseable transaction” but not a major transaction. No new equity will be issued, and there is no impact on the number of shares.

Directors’ and Shareholders’ Interests

None of the directors or substantial shareholders of ISOTeam Ltd. have any direct or indirect interest in this acquisition, aside from their existing shareholdings.

Potential Price Sensitive Information

• The acquisition is at a considerable discount to market value, which may reflect positively on management’s ability to secure value-accretive deals.
• The potential conversion of part of the property into a dormitory could lead to significant cost savings and operational efficiencies, improving future profitability.
• The property’s strategic location and features could position ISOTeam to expand into new business areas, supporting long-term growth.
• The transaction does not dilute existing shareholders and is expected to have minimal immediate financial impact, but longer-term benefits could accrue from cost efficiencies and business expansion.

Further Developments

ISOTeam will make further announcements should there be any material updates on the transaction or related regulatory approvals.

The Option to Purchase and valuation report are available for inspection at ISOTeam’s registered office for three months from the date of announcement.

Cautionary Note to Investors

Shareholders and potential investors are advised to exercise caution when dealing in ISOTeam’s shares. They should refrain from taking any action that may prejudice their interests and consult professional advisers if in doubt.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should consult their own professional advisers before making any investment decisions.

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