Hyflux enters sale and lease-back deal for global HQ

BARELY two years since Hyflux unveiled its new global headquarters in July 2012, the water specialist yesterday said that it will sell Hyflux Innovation Centre to Ascendas Real Estate Investment Trust (A-Reit) for $170 million in cash and lease it back for 15 years in a move to unlock capital to fund growth.

The sale and lease-back deal - entered with HSBC Institutional Trust Services (Singapore) Limited in its capacity as A-Reit's trustee - will reap a divestment gain of $84 million for Hyflux, which retains the naming rights for the property as its largest tenant.

Hyflux will lease back 50 per cent of the gross floor area of 43,434 sq m for 15 years. All third-party tenants - which include NEC and American Express - will be assigned to A-Reit. The 10-