SETSCO Services, a wholly-owned subsidiary of inspection and technical services provider Vicom : WJP 0%, has won the tender to lease an industrial site at Jalan Papan (Plot 2) for some S$7 million.

The tender, which has a lease term of 20 years, was awarded by JTC, said the mainboard-listed company in a bourse filing on Wednesday (Dec 21). The site area of the Jalan Papan plot is 12,400.4 square metres.

Setsco will undertake the development of the plot and intends to use it for testing, inspection and certification activities once completed, subject to the terms of the lease.

The plan is also for the site to eventually replace the JIC Inspection Centre located at Pioneer, whose lease is expiring in November 2024, said the company. The inspection centre is owned and operated by Vicom’s subsidiary JIC Inspection Services.

A quarter of the tender price is due on Jan 5, 2023, while the remaining 75 per cent will have to be paid by Mar 8, 2023. The tender price was arrived at after taking into consideration the successful tender prices for the last three tenders for the lease of land parcels by JTC.

The company will fund the sum through internal resources. The transaction is not expected to have any material impact on the net tangible assets or earnings per share of Vicom for the financial year ending Dec 31.

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Shares of Vicom closed flat at S$1.93 on Wednesday, before the announcement.