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TEHO International CEO Lim See Hoe.
NextInsight file photoLESS THAN half a year following TEHO INTERNATIONAL’S maiden foray into property development with the acquisition of TIEC Holdings, it is into a joint venture for developing property in Cambodia.
On 14 August, the SGX Catalist-listed rope and wire specialist said that it has signed a MOU with independent and unrelated third parties to form a joint venture company in Cambodia for real estate development and investment.
No details were announced. This proposed JV comes hot on the heels of the completion of its acquisition of 100% of local property developer, TIEC Holdings, on 26 May for S$12.3 million.
The purchase consideration was a fraction of the independent valuation of S$60.8 million as at 7 January 2014 based on its unsold units and the contracted selling prices of sold units.
TIEC Holdings posted an audited profit after tax for the financial year ended 31 March 2013 of S$500,000 and had a NTA of S$1.6 million as at 31 March 2013.
S$7.3 million of the S$12.3 million purchase consideration was paid for in cash and the balance via issue of 25 million TEHO shares at 20 cents apiece.
Elite Residences @ Siglap. Artist's impressionTIEC Holdings specializes in residential properties in Singapore and is currently developing:
(i) Elite Residences at 52 Elite Terrace comprising 8 units of 3-storey strata landed terrace with basement and attic.
(ii) Urban Heritage at 238-242 Balestier Road comprising 3 retail units, 3 office units and 15 (1-2 bedroom) residential units.
(iii) 7 Berwick Drive comprising a pair of semi-detached units.
(iv) 61 Conway Grove comprising one semi-detached unit.
Explaining TEHO's entry into real estate, CEO Lim See Hoe said: “Being in the offshore marine industry subjects the Group to its volatile cycles. We believe the real estate sector will help to diversify our revenue and earnings streams."
TEHO posted revenue growth of 40.5% year-on-year to S$60.4 million for FY2014 (year end June). TIEC Holdings contributed S$5.1 milion in revenue, which is one full month of revenue post acquisition.
The Group's net profit was up 42.5% at S$3.4 million. It proposed a final dividend of 0.8 cent per share, representing a dividend payout of 32.5%.
Related story: TEHO: Pays First Interim Dividend After M&A Boosts Revenue
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