Advance SCT sells factory for S$6.3m

Singapore-listed Advance SCT says its unit Tsing Yi Enterprises has entered into a sale and leaseback agreement for a factory at Kranji Crescent.

Tsing Yi will sell the property to Shingda Construction for S$6.3 million and lease it back.

Based on the net book value of the property, the company will register a S$370,000 deficit from the proposed sale.

However, Advance SCT says the move will enable it to realise cash and unlock liquidity to allow resources to be used more efficiently.

It will use the proceeds to settle an outstanding term loan and for working capital purposes.

Source : Channel NewsAsia – 20 Jul 2009

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