SINGAPORE - Cambridge Industrial Trust has agreed to sell its remaining leasehold interest in a property at Ubi Avenue for S$22.1 million.
The sale price excludes divestment costs and applicable goods and services tax, CIT's manager said on Monday (Jan 23).
The proposed sale originated from an unsolicited enquiry, it added.
The transaction is subject to approval by the Housing and Development Board and its completion is expected in May 2017.
The sale proceeds will be used for the repayment of debt, acquisition opportunities, asset enhancement initiatives and for working capital purposes.
This divestment is in-line with CIT's FY2016 business strategy, focused on divestment of non-core properties and recycling capital for greater investment flexibility and better returns, said its manager.
The property is a 5-storey light industrial building located at the junction of Ubi Avenue 3 and Ubi Road 3. It has a gross floor area of approximately 141,135 square feet with a remaining land tenure of approximately 39 years.