SINGAPORE - The trustee of Cambridge Industrial Trust (CIT) has granted UBZ System Pte Ltd an option to purchase CIT's remaining leasehold interest in 2 Ubi View for S$10.5 million.

The price excludes divestment costs and goods and services tax. It represents a premium of about 6 per cent above the property's current book value of S$9.9 million and a 40 per cent premium to the purchase price of S$7.50 million in 2006.

CIT's manager said UBZ made an "unsolicited offer" for the five-storey light industrial building, which is located along Ubi View, at the junction of Ubi Road 3 and Ubi Avenue 3, off Eunos Link.

It has remaining land tenure of about 42 years and a gross floor area of approximately 43,654 square feet.

The completion of the sale is expected to take place in October.

CIT's manager also said the divestment is "consistent with the trust's business strategy, which is focused on divestment of non-core properties and recycling of 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.