Logistics service provider CWT on Tuesday said it has sold one of its warehousing hubs in the Jurong area for S$115.2 million.
No names were given, but CWT said the buyer is a property fund focused on the Asia-Pacific region.
Under the agreement, CWT will lease the premises back for five years initially, with an option to renew for another three years.
The company will realise a total gain of some S$85.7 million from the sale, based on the aggregate book value of the property of S$28.1 million and after accounting for the relevant costs to the sale.
The property, located at 46A Tanjong Penjuru, is currently used by CWT to provide warehousing facilities for its customers.
CWT said the sale and leaseback deal will help the company realise its investment while it continues to use the property for its existing operations.
The firm will use the proceeds to reduce its bank loans and fund its local and regional expansion.
It also intends to return a portion of the net proceeds to shareholders in the form of dividends or through a share buy-back scheme. – CNA/ac
Source : Channel NewsAsia – 3 Jun 2008