SINGAPORE (June 10): Chip Eng Seng Corporation has exercised its option to buy a property at 65 Tech Park Crescent for $25 million. Chip Eng Seng has paid an option amount of $1 million and the purchase should be completed later this month.

The property, which has a book value of $25.85 million, is a three-storey light industrial building with two mezzanine levels.

It sits on a site of 85,764 square feet and has a gross floor area of 107,373 square feet. It has 33 years remaining in its lease of 60 years. 

According to Chip Eng Seng, its pre-cast concrete works and prefabricated prefinished volumetric construction activities are now done out of its existing plant in Johor. The company plans to use this property to complement its production capacity, so as to meet “burgeoning demand” for pre-cast and PPVC building components.

With a greater production capacity, Chip Eng Seng, already one of the leading contractors in Singapore, would then be able to tender for even bigger projects.

It can also supply pre-cast and PPVC components to other contractors, said the company back in March 18, when it announced the purchase of this Tech Park Crescent property.

Chip Eng Seng shares closed at 58 cents on June 10, up half a cent.