Tat Hong disposes four Australian properties for $24.7m

The firm will get a gain of $9.1m.

Tat Hong, via its subsidiary Tutt Bryant Group Limite, has inked a conditional sale and leaseback agreement for four of its properties in Australia with Primewest Funds for an aggregate cash consideration of $24.7m (A$23.3m).

The cash consideration was arrived at on a willing-buyer, willing-seller basis following TBG’s negotiations with Primewest.

Under the Sale and Leaseback Agreement, TBG will lease the Properties from Primewest for a period of 12 years at an aggregate rental of $2m (A$1.91 million) per annum, subject to a fixed annual base rent adjustment and market rent reviews on set intervals within the lease term.

“As the Properties have a combined net book value of A$16.4 million (approximately S$17.4 million) as at 31 January 2015, the Group would realise a gain of A$6.7 million (approximately S$7.1 million), after deducting expenses,” stated Tat Hong.