Mainboard-listed Natural Cool Holdings said its unit has told its property at 29 Tai Seng Avenue to Emirates Tarian Capital for S$53 million.
After the deal is done, Natural Cool Investments will leaseback the property for 10 years at an annual average rent of S$4.74 million.
Natural Cool’s CEO, Joseph Ang, said the sale is in line with the firm’s efforts to adopt an asset-light strategy.
He added that the firm has not decided what to do with the proceeds of the sale, but may use it to repay bank borrowings, to distribute to shareholders as dividends, or to use as working capital to fund future growth and expansion.
The proposed sale and leaseback deal is subject to shareholder approval, as well as legal and binding due diligence on the property.
Source : Channel NewsAsia – 14 Jan 2010