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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.

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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.

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