Global Palm Resources’ 95 percent-owned Indonesian subsidiary PT Prakarsa Tani Sejati entered a deal to buy the right to purchase an office unit in South Jakarta for around 79.2 million rupiah, or around S$7.4 million, in cash, the company said in a filing to SGX Thursday.
“The directors are of the view that the purchase is in the best interests of the group to own a permanent operating office located in the Sudirman Central Business District in Jakarta, instead of having to lease and to be subjected to the uncertainty of the changes of the rental terms upon expiry of each rental period,” Global Palm said in the statement.
The property — located at Level 38, Units D, E and F of Treasury Tower located in the Sudirman Central Business District — will be acquired from unrelated third party PT Srikandidiamond Motors, Global Palm said.
The office unit, which has an area of around 1,361 square meters, will be paid for on completion, expected on or before 14 October, the filing said. The property will be used as the group’s office premisis, the filing said.
Global Palm said the consideration will be funded by internal resources.
As a relative figure, Global Palm noted the purchase price is around 19.53 percent of its market capitalisation of S$38.1 million on 26 August.
Because the deal value is less than 20 percent of the market capitalisation, it isn’t subject to shareholder approval, Global Palm said.