Kimly Limited plans to acquire interests in four leasehold coffee shops in mature HDB estates and three freehold industrial canteens, as well as three short-term coffee shop leases, for an aggregate consideration of $59 million.
With this move, Catalist-listed Kimly will have a footprint of 81 food outlets islandwide.
The acquisition is part of the group's efforts to pursue long-term direct ownership of properties where it operates and manages food outlets, so as to enhance shareholder value, said the company in a bourse filing yesterday.
Its wholly owned subsidiary, Jin Wei Food Holdings, has entered into a non-binding term sheet with a group of third-party vendors to acquire the target properties.
The aggregate consideration of $59 million was arrived at on a willing-buyer, willing-seller basis, said Kimly, and takes into account the quality of the assets and their utilisation and future potential.
The amount comprises $56.06 million for the long-term leasehold coffee shop units and freehold industrial canteen units. This includes cash of $46.06 million and the issuance of 40 million new shares in the share capital of Kimly at 25 cents per share.
The short-term coffee shop leases, which are HDB direct leases, will be paid with $2.94 million cash, utilising internal resources. Kimly will also be commissioning valuations on the properties.
Frasers Commercial Trust
Frasers Commercial Trust's distribution per unit was unchanged from a year ago at 2.4 cents per unit for its fourth quarter ended Sept 30.
Gross revenue inched up 1.3 per cent to $32.9 million for the quarter, from $32.5 million a year ago, the commercial real estate investment trust's manager said in a regulatory filing yesterday morning.
Net property income grew 0.5 per cent on the year to $21.7 million for the quarter, from $21.6 million. This was mainly due to higher rental incomes from China Square Central and Central Park, higher accounting income on a straight-line basis over the term of leases recognised for Alexandra Technopark, lower property maintenance expenses for Caroline Chisholm Centre and the Singapore properties, and lower utilities for Alexandra Technopark.
Total income available for distribution rose 2.3 per cent year on year to $21.9 million, from $21.4 million.
The distribution will be paid out on Nov 29, after books closure on Oct 31.