HONG KONG, Jan. 15, 2016 /PRNewswire/ — Nirvana Asia Ltd ("Nirvana Asia" or the "Company", together with its subsidiaries, the "Group", SEHK stock code: 1438) announces today the Group has accepted the letter of offer from the Singapore Land Authority ("SLA") to extend the Group’s existing lease in Singapore from August 13, 2029 to August 13, 2098 subject to, among others, the payment of a lease extension premium of Singapore dollars ("SGD") 47.0 million (equivalent to approximately United States dollars ("USD") 32.7 million).
The lease is on a parcel of land known as Lot 1225T, Mukim 12 at No 950, Old Choa Chu Kang Road, Singapore where the Group’s columbarium, Nirvana Memorial Garden Singapore ("Nirvana Singapore") is erected thereon (the "Lease Extension").
A lease extension premium of SGD47.0 million (equivalent to approximately USD 32.7 million) and 7% Goods and Services Tax of approximately SGD3.3 million (equivalent to approximately USD 2.3 million) (the "Premium") are payable to the Commissioner of Lands, SLA on or before January 29, 2016.
The Premium is determined after taking into consideration, amongst others, the extended lease period of 99 years from August 14, 1999 and the gross floor area of Nirvana Singapore. It will be funded by the proceeds from the Company’s initial public offering completed in December 2014.
The extended lease covers an existing site area of approximately 10,000 square meters. The Lessor had on November 4, 2014 approved the increase in gross floor area of Nirvana Singapore from 11,150 square meters to 43,500 square meters.
Nirvana Singapore contributed 9.7% and 13.2% of the Group contract sales for the year ended December 31, 2014 ("2014") and 9 months ended September 30, 2015 respectively.
Potentially, Nirvana Singapore has an unsold niches capacity of 70,000 units. Based on the average sales price of USD16,100 per unit for 2014, Nirvana Singapore will have a potential niche sales value of USD1.1 billion.
The Lease Extension is expected to enhance future sales of Nirvana Singapore as it allows customers to enjoy the extended lease tenure from August 13, 2029 to August 13, 2098. The enhanced marketability of Nirvana Singapore represents an important milestone for the Group given the favorable market potential and track record of the Group in Singapore. In essence, the Lease Extension is expected to further entrench the long term presence of the Group in Singapore.
About Nirvana Asia
Nirvana Asia is the largest integrated death care service provider in Asia, in terms of contract sales, revenue and land bank in 2013, according to Frost and Sullivan. The Company offers burial and funeral services and products on both as-need and pre-need bases, strategically targeting the premium segment of the death care services market. In 2013, Nirvana Asia is the largest death care service provider in Malaysia and the only commercial columbarium operator in Singapore. Currently, the Company offers premium death care products and services through a network of 12 cemeteries, 14 columbarium facilities, six on-site crematoria and two funeral homes in Malaysia, Indonesia, Singapore, Thailand and China.
For further information, please contact:
iPR Ogilvy & Mather
Natalie Tam / Peter Chan/ Clara Liu
Tel: +852-2136–6182 / +852-2136–6955 / +852-3920–7631