KUALA LUMPUR (Sept 2): Wah Seong Corp Bhd's attempt to dispose of idle Singapore real estate for S$13 million (RM40.1 million) lapsed as the buyer was not able to get approval from the relevant authorities in the island nation.

The real estate consists of 13,734 sq m leasehold land with industrial workshop, warehouse and office built on it. The property has 28 years of leasehold tenure until end-2037.

The purchaser, Swee Joo (Pte) Ltd, wholly owned by Singaport Cleanseas Pte Ltd, is involved in manufacture and repair of tanks, reservoirs and containers of metal such as metal cylinders, storage vessels and containers for compressed or liquefied gas. The company also manufactures petroleum lubricating oil as its secondary activity.

Wah Seong said both parties have mutually agreed to cancel the transaction as Swee Joo was unable to procure and obtain written approval from the Jurong Town Corp after Singapore's National Environment Agency rejected the intended use of the property by the purchaser.

The disposal was part of Wah Seong's initiative to unlock its idle assets to improve its working capital position.

The oil and gas and industrial services provider said the property is not being used as its fabrication business was moved to Batam Yard, Indonesia a few years ago.

Shares of Wah Seong, which have climbed 31% in less than two months since July 25, closed half a sen or 0.76% lower at 65.5 sen on Friday (Sept 2), giving it a market capitalisation of RM507.55 million.