Natural Cool Holdings’ 80%-owned subsidiary SFB Holdings has exercised an option granted by Leong Chai Kee Food Manufacturer, a third-party vendor to purchase the properties at 15 Woodlands Loop #04-15 and #04-16 for a consideration of $850,000.

The properties are two adjoining food factory units located on the fourth floor of a four-storey ramp-up food factory block comprising office and production spaces.

Both properties have a 30-year leasehold granted by Jurong Town Corporation that commenced on June 1, 1997. Their remaining lease period is 6.2 years and 6.1 years for units #04-15 and #04-16 respectively.

SEE: Natural Cool makes foray into F&B industry with million-dollar acquisition

Under Jurong Town Corporation’s lease extension scheme, SFB is entitled to apply, subject to certain conditions, for a lease extension of the tenure of the property up to 2037.

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SFB says it intends to apply for the extension at the appropriate time.

Of the consideration, 1% (or $8,500) will be paid as the option money before the date of the option, while 4% ($34,000) will be paid upon the exercise of the option.

The remaining 95% of the consideration will be paid upon completion.

Shares in Natural Cool closed flat at 3.9 cents on Jan 22.