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Singapore-listed Cambridge Industrial Trust on Monday (5 September) announced that it has entered into an agreement with UBZ System for the sale of the remaining leasehold interest in an industrial property at 2 Ubi View, for a consideration price of S$10.5 million.
In a filing to the Singapore Exchange, trust manager Cambridge Industrial Trust Management said the proposed sale was triggered by an unsolicited offer from UBZ.
According to CIT, the five-storey light industrial building (pictured) with a gross floor area of 43,654 sq ft has a remaining land tenure of 42 years.
The Sale Consideration of S$10.5 million represents a premium of approximately six percent above the current book value of S$9.9 million and a 40 percent premium to the purchase price of S$7.50 million in 2006. The sale is expected to be completed in October this year.
CIT said the divestment of the said property is “consistent with CIT’s FY2016 business strategy, focused on divestment of non-core properties and recycling capital for greater investment flexibility and better returns.”
“The sale proceeds from the divestment will be used for the repayment of debt, acquisition opportunities, asset enhancement initiatives and for working capital purposes,” it added.
Image source: Cambridge Industrial Trust
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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