Broadway unit sells industrial property in US for US$3.69m

BROADWAY Industrial Group said on Wednesday its wholly owned subsidiary Compart Engineering, Inc (CE) has sold an industrial building in the United States for US$3.69 million.

The precision parts manufacturer said in a pre-market filing that the sale was a good opportunity for the company to dispose of an underperforming asset for "valuable consideration" and is part of a plan to strengthen its balance sheet. The property had been valued at US$3.17 million by Colliers International on June 2, 2017.

The company put the proceeds from the disposal at more than approximately S$2,24 million over the book value of the property and expenses to be incurred.

It said it intends to use the net proceeds to strengthen the company's financial position as well as to provide working capital for the group.

The property, located in San Bernardino, California, comprised a 24,760 square feet (2,300 sq m) free standing industrial building situated on a 1.3 acres (5,300 sq m) lot.

It was leased to Compart Engineering, LLC, a 48 per cent subsidiary of CE, who will continue to lease it for its business operations after the completion of the sale to a US real estate investment company.

Assuming the disposal had been effected on Dec 31, 2016, the net tangible assets per share of the group would be 31.30 Singapore cents compared with 30.82 cents without the disposal.