Cambridge Industrial Trust selling industrial property in Woodlands for S$17.2m

CAMBRIDGE Industrial Trust (CIT) is selling the remaining leasehold interest of an industrial property in Woodlands for S$17.2 million.

Its manager Cambridge Industrial Trust Management Limited said that an option for the proposed sale was signed on June 14, without identifying the buyer. The book value of the property is S$17.2 million.

"This divestment is in-line with CIT's FY2017 business strategy, focused on divestment of non-core properties and recycling capital for greater investment flexibility and better returns, while at the same time remaining committed to being a long-term investor in its properties," it added.

The four-storey industrial building is located within the JTC Woodlands East Industrial Estate. It has a gross floor area of about 124,425 sq ft with a remaining land tenure of about 39 years.

Completion of the sale is subject to approval by JTC Corporation and is expected to take place in the fourth quarter this year. The sale proceeds will be used for the repayment of debt, acquisition opportunities, asset enhancement initiatives and/or for working capital purposes.

e-Shang Redwood Group, a developer and operator of logistics properties in China, Japan and South Korea, had in January acquired 80 per cent of the manager of CIT, following an option agreement in October to buy up to 10.65 per cent of CIT from three existing unitholders.