Indigo Star (08373) has announced that its wholly-owned subsidiary, CS Ceramiche, acting as the buyer, has entered into an option agreement with the seller, HSBC Institutional Trust Services (Singapore) Limited. The buyer intends to acquire the property from the seller for a consideration of S$16.588 million.

The property in question comprises Lot 9962M of Town Subdivision 27, located at 39 Changi South Avenue 2, Singapore (Postal Code 486352), along with the buildings, plant, machinery, electrical equipment, fixtures, and fittings situated thereon. The premises are currently utilized for warehouse operations and ancillary office purposes.

As per the terms of the option agreement, the seller is obligated to deliver vacant possession of the property to the buyer upon completion of the transaction.

The acquisition represents a rare opportunity due to the property's strategic location and its spacious layout, which is well-suited for use as a warehouse and dormitory accommodation. The board of directors believes the purchase is expected to benefit the group through rental savings and a reduction in relocation costs, as owning the property will eliminate the need to move upon lease expiry.

Compared to the existing leased dormitory facilities, the acquisition will allow the group to avoid risks associated with lease renewals, for which the group holds no guarantees. Given this uncertainty, the group prefers to purchase a suitable property for housing its expatriate staff.

Owning the property's title is anticipated to provide long-term cost efficiency. The group will only be responsible for maintenance and operational expenses, while eliminating certain rental payments of approximately S$2.2 million (equivalent to approximately HK$13.2 million) under the current lease, along with associated relocation costs. Consequently, the acquisition is expected to deliver sustainable savings on accommodation costs and enhance the overall financial robustness of the group.