KUALA LUMPUR (Nov 14): Teo Seng Capital Bhd is selling a leasehold two-storey detached factory in Singapore for SG$8.5 million (about RM29.41 million), as the 19-year-old property remains under-utilised, since most of the group’s egg exports are directly delivered to wholesalers in the island nation.

The disposal gives rise to an opportunity to strengthen its liquidity and cash flow, which can be channelled to repayment of bank borrowings and working capital, Teo Seng said in a stock exchange filing on Tuesday.

Teo Seng bought the property in May 2015 at SG$8.0 million or about RM21.55 million, and the factory building is currently occupied by the group for its operations in Singapore, including warehousing, distribution and sale of eggs, as well as the provision of cold room and chiller room services.

The buyer is Rachelle The Rabbit Meadery Pte Ltd, an alcohol production company, with Wang Xizhu and Zhao Shuyi each owning a 34% stake, Triumph Dream Ltd holding 20%, and Tan Hon Liang, Zhao Fang and Wang Ting each owning 4%.

Teo Seng expects the disposal to be completed by the third quarter of next year.

Shares of Teo Seng, which gained nearly 90% year-to-date, closed four sen or 3.0% higher at RM1.38 on Tuesday, giving it a market capitalisation of RM414.01 million.