Mooreast Holdings Announces Major Disposal of 51 Shipyard Road Property for \$29.7 Million

Key Highlights of the Announcement

• Proposed Disposal: Mooreast Holdings Limited’s wholly-owned subsidiary, Mooreast Asia Pte. Ltd. (MAPL), has granted an option to HLMG-Nuform System Pte. Ltd. to purchase its leasehold property at 51 Shipyard Road, Singapore, for a total cash consideration of S\$29.7 million.
• Major Transaction: The proposed disposal qualifies as a “major transaction” under the Catalist Rules of the Singapore Exchange, as the relative figures exceed 50% of the relevant thresholds.
• Shareholder Approval Required: Completion is conditional upon approval by Mooreast’s shareholders at an Extraordinary General Meeting (EGM) to be convened.
• Option Validity: The purchase option remains valid until 4:00 p.m. on 13 July 2026. If unexercised, the option lapses and the S\$297,000 option fee is forfeited.
• Significant Financial Impact: The disposal will unlock an estimated net gain of S\$14.3 million and net proceeds of S\$19.2 million for the group. The proceeds are earmarked for capital deployment into a newly acquired property at 60 Shipyard Crescent.

Details of the Transaction

The property comprises several lots (192V, 193P, 288L, and foreshore land 4802L of Mukim 7), with a total land area of over 34,000 square metres. The land is currently used for steel fabrication, warehousing, yard operations, and office use. The leases were granted by Jurong Town Corporation (JTC) and have remaining terms of approximately 17 and 18 years respectively.

The sale price was determined through arm’s length negotiations and is above the independently appraised open market value of S\$28.0 million as of 8 April 2026. The property’s book value as at 31 December 2025 was S\$15.3 million, with plant and machinery valued at S\$147,000.

Payment Structure and Key Conditions

• Option Fee: S\$297,000 (1% of sale price, already paid)
• Deposit: S\$1,188,000 (5% of sale price minus option fee, payable upon exercise)
• Balance: S\$28,215,000 (95% of sale price, payable on completion)
• Agency Commission: S\$445,500 (payable to IS21 Property & Management Consultancy Pte Ltd on completion)
• Conditions Precedent: JTC’s approval for the sale and use of the property by the Purchaser, JTC’s confirmation of no objection to assignment, and shareholder approval at EGM. If these are not met, the transaction may lapse and deposits refunded or forfeited as stipulated.
• Long Stop Date: All JTC approvals must be obtained within six months of option exercise, or the deal may be terminated.

Other Significant Terms

• Vacant Possession: Property will be delivered with vacant possession, except for plant and machinery.
• Six-Month Licence Back: Purchaser will grant MAPL a six-month, rent-free licence to occupy part of the property post-completion.
• Electricity Retail Agreement: The existing agreement with Union Solar Pte. Ltd. for electricity supply will be novated to the Purchaser on completion, where possible.

Financial Effects and Rationale

• Net Proceeds: After deducting outstanding loans and estimated transaction expenses of S\$10.5 million, net proceeds are estimated at S\$19.2 million. These will be applied to fund the recently acquired property at 60 Shipyard Crescent.
• Gain on Disposal: The excess of sale price over book value is around S\$14.3 million.
• Balance Sheet Impact:
  • Net Tangible Assets (NTA) per share increases from 8.7 cents to 14.6 cents.
  • Earnings per Share (EPS) increases from 1.41 cents to 7.26 cents (assuming transaction completed at start of FY2025).

Key Shareholder Considerations & Price Sensitivity

• Potential Price Impact: The disposal is expected to significantly strengthen the company’s balance sheet and earnings profile, which should be positive for share price performance if completed.
• Risks: The transaction is subject to several regulatory and shareholder approvals. There is no certainty of completion until all conditions are satisfied. Any failure or delay may negatively impact the share price.
• No Director/Shareholder Conflict: None of the directors or controlling shareholders have any direct or indirect interest in the transaction (other than via their shareholdings).

Next Steps

Mooreast will dispatch a circular with further details to shareholders and call an EGM for approval. Investors are strongly advised to monitor the company’s announcements for updates on the progress and outcome of the EGM and regulatory approvals.

Important Caution

The company has emphasised that the proposed disposal is subject to shareholder and regulatory approvals, and there is no guarantee the transaction will proceed to completion.

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 exercise due diligence and consult their professional advisors before making any investment decisions. The information is based on company announcements and may be subject to change.