Glostrext buys office space in Singapore for RM2.6m

• In a filing with Bursa Malaysia on Friday, Glostrext said its indirect wholly-owned subsidiary Glostrext Technology (S) Pte Ltd has accepted the option to purchase a property known as 30 Kaki Bukit Road 3, #02-01 Empire Technocentre, Singapore, which was granted by Singapore-based Uninec Construction Pte Ltd on Oct 13 this year.

KUALA LUMPUR (Oct 20): ACE Market-listed Glostrext Bhd is buying a 1,735-sq-ft office space in Singapore for S$750,000 (RM2.61 million).

In a filing with Bursa Malaysia on Friday, Glostrext said its indirect wholly-owned subsidiary Glostrext Technology (S) Pte Ltd has accepted the option to purchase a property known as 30 Kaki Bukit Road 3, #02-01 Empire Technocentre, Singapore, which was granted by Singapore-based Uninec Construction Pte Ltd on Oct 13 this year.

The purchase consideration will be funded via internal funds.

Glostrext said no valuation was carried out on the property as the purchase consideration was based on an internal survey of prices for recent commercial property transactions within the vicinity and the purchase consideration is deemed reasonable.

Glostrext Singapore currently owns two units of properties in the same building, which are #06-09 30 Kaki Bukit Road, Empire Techno Centre (office) and #01-02 30 Kaki Bukit Road, Empire Techno Centre (warehouse on ground floor).

Glostrext also said the space of the property will need to go through customised renovation to fit the company’s purpose. "Renting is not a preferred option as the landlords may not approve of such configurations to their space, and may ask for higher rent after the company spend a considerable amount on renovations, not to mention that commercial property prices are rising, and landlords can choose to change tenants after expiry of the tenancy period. This may cause risk and uncertainty to the company’s expansion plans and operation."

The proposed acquisition is not subject to the approval of the shareholders of Glostrext or any relevant government authorities.

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed within 10 weeks.

Glostrext shares closed down 0.5 sen or 2.56% at 19 sen on Friday, giving it a market capitalisation of RM75.4 million.

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