JE Cleantech Holdings Limited Announces Option Agreement to Sell One of its Industrial Properties

Company Overview - JE Cleantech Holdings Limited is based in Singapore and primarily engaged in the sale of cleaning systems and equipment, as well as providing centralized dishwashing and ancillary services [2] - The company operates through its subsidiary, JCS-Echigo Pte Ltd, which designs, develops, manufactures, and sells cleaning systems for various industrial applications, mainly targeting customers in Singapore and Malaysia [2] - The cleaning systems are designed for precision cleaning, featuring technologies such as particle filtration, ultrasonic rinses, high-pressure drying, and deionized water rinses [2] Recent Transaction - JCS-Echigo Pte Ltd has entered into an option to purchase agreement for the sale of its leasehold industrial property in Singapore for SGD7,393,000 (USD5,480,000), with an expected completion date by June 30, 2025 [1] - An initial deposit of SGD369,650 (USD274,000) has been collected, and the sale is expected to yield a net gain of approximately SGD3.7 million (USD2.7 million) over the net book value upon completion [1] - The completion of the sale is contingent upon obtaining consent from the lessor for the sale and transfer of the property [1] Strategic Insights - The CEO, Ms. Elise Hong, indicated that the property was acquired 11 years ago for a centralized dishwashing facility, which has a remaining leasehold period of 19 years [2] - The decision to sell the property was influenced by a favorable purchase offer, and the company believes that consolidating manufacturing and dishwashing operations will lead to cost savings and operational benefits [2]