Swiber Looks To Divest Jurong HQ

Swiber Looks To Divest Jurong HQ For S$30.8mil

SINGAPORE – Offshore and marine group Swiber Holdings revealed that it has signed a non-binding memorandum of understanding (MOU) with an independent third-party would-be buyer to divest its headquarters at 12 International Business Park for S$30.8 million, according to a Singapore Exchange (SGX) filing published on Tuesday night (8 March, SGT).

In its filing with the local stock exchange, the group disclosed that its wholly-owned subsidiary Swiber Corporate has entered into the MOU to sell the 5-storey leasehold business park project in Jurong East.

The Business Times reported on Wednesday morning that this is not the first time that Swiber has attempted to sell its HQ. In May 2021, the company announced that it signed an MOU to sell the property for S$39 million. However, it divulged on Tuesday that the prior MOU did not lead to any binding sale and purchase (S&P) agreement during the exclusivity period, and it had expired.

The property stands on an 8,000 sq m site and the building has a floor area of roughly 10,841 sq m. Its 60-year lease tenure that was granted by the Jurong Town Corporation (JTC) took effect in December 1995.

Based on a desktop valuation report issued by Edmund Tie last October, the asset had a market value of S$34 million. However, the property’s value is about S$28.4 million according to the firm’s latest unaudited consolidated financial statements as of March 2016. If it sells at S$30.8 million, the net proceeds are estimated to be about S$2.4 million.

But as the property is presently mortgaged to DBS, the gain from the proposed sale will be used for partial repayment of loans owed to the bank.

Swiber, which has been under judicial management since 2016, disclosed that 12 International Business Park has been underutilised since then. In fact, only one floor is occupied by the group and a large amount of space has been vacant since September 2017.

The asset has not been generating a hefty rental income since a past lessee vacated the premises that month. Past efforts to secure new tenants also failed due to a supply glut of leasable premises in International Business Park, it added.

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