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Cambridge Industrial Trust to sell 2 Ubi View for S$10.5m

CAMBRIDGE Industrial Trust Management on Monday said it has entered into an agreement with UBZ System for the proposed sale of its remaining leasehold interest in 2 Ubi View for S$10.5 million.

According to the manager of Cambridge Industrial Trust (CIT), the proposed sale originated from an "unsolicited offer" from UBZ.

The sale consideration represents a premium of about 6 per cent above the 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.

The completion of the sale of 2 Ubi View is expected to take place in October.

CIT Management said that the divestment is "consistent with CIT's FY2016 business strategy", focused on divestment of non-core properties and recycling 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.

The property is a five-storey light industrial building located along Ubi View, at the junction of Ubi Road 3 and Ubi Avenue 3, off Eunos Link. It has a remaining land tenure of about 42 years and a gross floor area of about 43,654 square feet.