SLB Development inks agreement to divest industrial property

SLB Development has entered into a share sale and purchase agreement to divest the entire share capital of Wellprime, its wholly-owned subsidiary which owns a property at 50 Lorong 21 Geylang for S$13.5 million.

The freehold industrial property in question has a land area of about 837.1 square metres. SLB originally planned to redevelop it into a multi-use light industrial building comprising 11 factory units and common facilities.

It is selling the property to Jun Yuan Holdings.

The proceeds from the proposed disposal would be used for the discharge of the bank loan related to the property, acquisition of potential development property and for general working capital purposes, said SLB.

It added: "The proposed disposal is in the interests of the group and would be an opportunity to divest the investment in the property and would allow the group to enhance its cash flows and its resources to be deployed for potentially higher-yield development property projects."