Vicom obtains the $7 million lease contract for the land block at Jalan Papan
Vicom Singapore, the country’s biggest vehicle inspection firm is given a contract for the lease of a parcel of land located in Jalan Papan (Plot 2) at a cost that is $7.6 million.
The contract, which has a an lease period for 20 years was granted to Jurong Town Corporation (JTC). Jurong Town Corporation (JTC).
The site parcel parcel is 12,400.4 square meters (133,476.8 sq feet) The land is being zoned to industrial use.
Vicom’s wholly owned subsidiary, Setsco Services, will develop the land parcel. When the development is completed, development, the land will be utilized to test, inspect and certification. It is also expected to be replaced by Pioneer’s JIC Inspection Centre at Pioneer which lease is ending in November 2024.
JIC Inspection Centre JIC Inspection Centre is owned and operated by Vicom’s 78% owned company, JIC Inspection Services Pte Ltd.
From the price of tender 25% (minus the deposit for tender of $350,000, which was previously paid) must be paid by January 5th 2023. And the remainder of 75% remainder is due to be due by March 8, 2023.
According to Vicom the tender price was determined by weighing into the tender prices that were successful for the three previous lease tenders for parcels of land by JTC.
The tender price will be made via internal funds. It is unlikely to have a significant impact on Vicom’s net tangible asset (NTA) (EPS) or profits per share (EPS) for the fiscal year closing on Dec 31.