CIT to divest Ubi property for S$22.1m

CAMBRIDGE Industrial Trust (CIT) announced on Monday that it has entered into an agreement with RBC Investor Services Trust Singapore Limited for the proposed sale of the remaining leasehold interest in a property located at Ubi for S$22.1 million, excluding divestment costs and application goods and services tax.

The five-storey light property, located at 55 Ubi Avenue 3, has a gross floor area of about 141,135 square feet with a remaining land tenure of approximately 39 years.

In an SGX filing, CIT said that the divestment is in line with CIT's FY2016 business strategy, which is focused on divestment of non-core properties and recycling capital for greater investment flexibility and better returns.

Sale proceeds will be used for the repayment of debt, acquisition opportunities, asset enhancement initiatives and for working capital purposes.

The proposed sale originated from an unsolicited enquiry. The completion of the sale is subject to approval by the Housing and Development Board and is expected to take place in May 2017.