SINGAPORE (EDGEPROP) - Dual-listed real estate management firm LHN Group, announced that it has exercised the option to purchase an industrial property at 55 Tuas South Avenue 1 for $21 million. LHN’s indirect, wholly-owned subsidiary, Chrysolite Industries Pte Ltd, had accepted the option to purchase the property on July 14. The vendor was DBS, as the property was a mortgagee sale. (See also: LHN acquires four-storey mixed-use building in Balestier for $18 million)

The property at Tuas South sits on a URA land parcel of 51,655 sq ft with 39 years left on its lease. The building complex has gross floor area (GFA) of 129,138 sq ft. One part of it comprises an 11-storey industrial building with basement carpark; another part, a single-storey industrial factory with a double-storey workers’ dormitory with a capacity of 64 workers.

The Tuas South Property is currently leased to two tenants for use as a workers’ dormitory. Two other parties have licensed the use of an area of the rooftop for the installation, repair of antenna, apparatus, cabling and accessories as well as maintenance of radio frequency infrastructure.

Another party is operating part of the space in the Tuas South property as a workers’ dormitory for up to 30 workers in one of the rooms. It has also taken up three parking spaces as well as space to operate a precast concrete components production facility. This party is allowed to occupy the areas until February 28, 2023, at a total monthly rent of $73,500 (exclusive of GST).

According to LHN Group, benefits of acquiring the Tuas South property include the ability to broaden its space optimisation business, provide potential capital appreciation and opportunity to generate revenue. The group intends to operate the property under the Business 2 zoning for industrial developments, with value-added logistics support services for its tenants.

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