Furniture ODM manufacturer and brand owner Koda is proposing to acquire a property located at 18 Tagore Lane, Singapore for a consideration of $11.2 million.
The property is a freehold industrial building that has a total land area of 604.1 sqm and a gross floor area of 1,185.5 sqm.
This property, following the acquisition, will house the group's operations - corporate office, furniture showroom, products design and development, workshops, stores and warehousing facilities - that are currently at 28 Defu Lane, Defu Industrial Park.
The group's lease at the leasehold building at Defu Lane will expire on Nov 30, 2023 and there is no certainty that the lease will be renewed after the expiry days. Considering the risk of non-renewal and time required to relocate, the group decided that it was operationally practical to terminate its lease before the expiry date and find a suitable property to replace it.
Shares in Koda closed at 78 cents on Aug 24.
Photo: The Edge Singapore/ Samuel Chua