Thanks for joining us once again where we bring you quick highlights and snippets from three companies.
City Developments Limited (SGX: C08)
City Developments Limited, or CDL, has acquired a 250-year leasehold site for S$11.8 million in Birmingham’s Paradise precinct as part of its expansion into the UK Private Rented Sector (PRS).
Comprising 16,760 square feet, the site will be developed into a residential tower with 370 build-to-rent units.
Known as the “Octagon Building”, it will be the group’s third PRS project in the UK since 2019 and will be developed into a 49-storey octagonal tower with apartments, a retail unit, as well as concierge services and other amenities.
The total development cost amounts to approximately S$200 million and the project should be completed in 2025.
This acquisition and development will enhance CDL’s recurring income segment once completed and also improve the quality of CDL’s PRS portfolio.
The PRS segment in the UK has shown its resilience during the pandemic and is less affected by cyclicality compared to other property sub-classes.
CDL intends to scale up its UK PRS portfolio in key regional cities to augment its recurring income stream.
Aside from the UK, CDL also has five PRS projects in Japan’s Osaka and Yokohama.
The group intends to further expand its PRS portfolio in locations such as Australia.
Grand Venture Technology Ltd (SGX: JLB)
Grand Venture Technology, or GVT, a solutions and services provider for the manufacture of complex precision machining and sheet metal components, announced two back-to-back acquisitions worth S$20 million.
These acquisitions are meant to augment the group’s capabilities and capacity in China and Malaysia.
The first acquisition is that of J-Dragon. GVT will pay a total of S$12.2 million comprising S$4.2 million in cash and the remaining S$8 million through the issuance of close to 6.9 million shares at S$1.1619 per share.
J-Dragon is a precision engineering company that engages in the manufacture and research cum development of parts and modules for the aerospace, medical, and semiconductor industries.
GVT intends to use J-Dragon as a springboard for expansion into the aerospace and medical business segments, where it sees “huge market potential and positive trends”.
The second purchase involves Formach and is worth around S$7.8 million.
GVT will pay S$6.8 million in cash and issue around 860,658 shares at S$1.1619 each to settle the remaining S$1 million.
Based in Johor, Malaysia, Formach manufactures sheet metal and machine structure weldment and also provides electro-mechanical machine assembly services.
This acquisition is expected to boost the growth of GVT’s front-end semiconductor and life sciences business.
Both acquisitions are set to close by the first quarter of 2022.
Nanofilm Technologies International Ltd (SGX: MZH)
Nanofilm recently issued its very first Sustainability Report for the fiscal year ended 31 December 2020.
The report sets out the group’s ESG principles and affirms its commitment to a set of ambitious targets to be achieved by 2030.
Nanofilm has already begun incorporating environmentally-friendly practices in its production facilities.
It has invested in ultrafiltration and reverse osmosis filtration systems to recycle its production water and installed solar panels to transition to renewable energy sources.
The group has also released a business update to recap the key business developments of 2021.
The advanced materials business unit (BU) should see its momentum carry over into the first quarter of 2022 (1Q2022).
The nanofabrication BU has commenced its first micro-lens array production for new-generation wearables, which should contribute positively to the BU’s performance in the current quarter and beyond.
The industrial equipment BU enjoys strong demand from external customers and has a visible order book headed into 2022.
Nanofilm continues to build technology ventures aside from strategic partners such as Sydrogen, its hydrogen fuel cell joint venture between Venezio Investments and the group.
Acquisitions also help to enhance Nanofilm’s value chain capabilities, such as that of Miller Technologies Pte Ltd back in October to complement the group’s industrial equipment BU.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.