Apart from providing kitchen solutions to high-end homes, Kitchen Culture will now expand to property development, trading and investment.
It has signed a non-binding memorandum of understanding with an unspecified partner for a joint venture (JV) where it will hold 20 percent stake, while the other 80 percent will be controlled by five unrelated firms.
Kitchen Culture noted that the JV could focus on an en bloc sale and high-end residential development that will include the acquisition of en bloc properties for S$92.2 million.
The company will also be able to use its network of contacts in property development, including main contractors, sub-contractors, building-materials suppliers and project consultants that will be “complementary” for the new business.
“Further, the group is expected to have a competitive edge in securing contracts for the supply of kitchen systems to the property development projects undertaken by the group in the future,” it said.
The establishment of the JV is conditional on approval by the board and shareholders and a successful entry into a definitive en bloc sale agreement at the purchase price.
Related Stories:
Low Keng Huat sees profit boost
CDL, Intrepid sign off on Tai Thong Crescent deal
APREA Singapore names new chairman