Property and retail firm Metro Holdings has entered into an option to sell a freehold warehouse in Pasir Panjang for $39.8 million in cash to OC Land.

Metro said it was an appropriate time to sell the warehouse as it was underutilised by the group. It noted that the warehouse was valued at around $40 million in January by DTZ.

The sale is expected to be completed within three months of April 4, the exercise date of the option.