Sevens Atelier, a Singapore-listed company, is acquiring an industrial building located at 60 Bendemeer Road. On May 2, the Catalist-listed group announced that its wholly-owned subsidiary Sevens Creation (SC) has been granted the option to purchase the property.
ECs offer an affordable alternative HDB EC to private condominiums with renting and selling restrictions. The Deferred Payment Scheme may look attractive, but be aware it will cost more overall than the Normal Payment Scheme.
The building is a 99-year leasehold, single-storey building, with a total land area of approximately 4,402 sq ft and a remaining lease of approximately 40 years and 10 months, zoned for “light industrial usage” by the URA. The vendor is currently occupied by Olympia Engineering, a Singapore-incorporated entity that deals with the trading and exporting of ISUZU automotive spare parts in Singapore.
The consideration of $4.15 million for the property was derived through a willing-buyer-willing-seller basis, based on indicative valuation from a Singapore-based bank for similar properties within the vicinity.
Sevens Atelier states that the acquisition of the property is a strategic move to consolidate all operations under one roof and achieve savings on rental costs of their current office and showroom.
After obtaining the necessary approvals from relevant authorities, the group intends to rebuild the property in order to house their showroom and administrative operations team. The transaction is expected to be completed within three months.
The option to purchase the property had to be exercised by May 23. With this in mind, Sevens Atelier made the decision to acquire the 60 Bendemeer Road property and had until the given date to do so. A willing-buyer-willing-seller basis was used to come up with the consideration of $4.15 million for the property.
This acquisition is beneficial to Sevens Atelier as it will be able to save on rental costs while consolidating operations under one roof. After a three month-period, once the necessary approvals are obtained, the group intends to rebuild the property and turn it into a showroom and administrative operations team headquarters.