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Singapore-listed Falcon Energy Group has completed the sale of two office space in the 50-storey International Plaza to YDL Capital for a total of $7.4 million, revealed an SGX filing on Tuesday (3 October).
Known as unit #15-19 and #22-14, the office premises are respectively located on the 15th and 22nd level of the commercial and residential building. Each has a remaining leasehold tenure of 51 years and seven months, given that the 99-year lease started on 2 June 1970.
Aside from having a gross floor area of about 219 sqm each, each property has a forced sale value of $3.61 million and open market value of $4.25 million. However, the company had to sell both office premises at a lower value to repay existing debt.
“The majority of the proceeds from the disposal will be applied towards settlement of outstanding amounts under credit facilities granted by United Overseas Bank and Ethoz Capital and secured by the properties,” said Falcon Energy Group.
Nevertheless, the offshore oil and gas contractor had signed two agreements to leaseback the two office properties for three years starting from 4 October 2017 for an overall monthly rent of $50,300.
The company is able to lease back the properties, and continue to operate at Unit #22-14 and sub-lease Unit #15-19 to a third party. This enables the company to continue operations without any disruption for the next three years after the disposal,” it added.
This article was edited by Keshia Faculin.
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