Tuesday, October 12, 2010

Freight Links Enters Into S$193 Million Sale Leaseback of Five Logistics Properties in Singapore

Singapore Exchange - October 11, 2010

Main board-listed Freight Links Express Holdings Limited (“Freight Links”), one of the leading logistics management and integrated freight forwarding groups in Singapore, has entered into proposed sale and leaseback transactions with Sabana Investment Partners Pte. Ltd. (“SIP”), for the benefit of the proposed Sabana Shari’ah Compliant Industrial Real Estate Industrial Trust (the “Sabana REIT”), for five of its properties for a total consideration of S$192.95 million, with a leaseback period of 5 years (the “Proposed Sale and Leaseback”). Subject to the receipt of the relevant regulatory approvals (including approval of the Monetary Authority of Singapore), the Sabana REIT is a Singapore-based real estate investment trust to be established and authorised in Singapore principally to invest in income producing real estate used for industrial purposes in Asia, as well as real estate-related assets. The five properties are at 30 & 32 Tuas Avenue 8, 218 Pandan Loop, 51 Penjuru Road, 33 & 35 Penjuru Lane and 18 Gul Drive (the “Properties”).

The sale of the Properties (the “Proposed Sale”) will result in net proceeds over the book value of the properties amounting to approximately S$99.4 million.

Freight Links, through its 51% shareholding equity interest in SIP, will participate in (subject to the receipt of relevant regulatory approvals) the manager (the “REIT Manager”) and the property manager (the “Property Manager”) of the Sabana REIT. Sabana REIT plans to acquire a portfolio of properties worth about $850 million. A conditional eligibility-to-list letter (the “ETL”) was received on 8 October 2010 from the Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the listing of and quotation for the units in the Sabana REIT on the Main Board of the SGX-ST.

The Proposed Sale and Leaseback constitutes a major transaction for Freight Links, requiring the approval of the shareholders at an Extraordinary General Meeting to be convened at a later date.

The Proposed Sale and Leaseback is also subject to, amongst other things, (a) the listing of the units in the Sabana REIT and commencement of trading of such units on the SGX-ST, and (b) obtaining JTC Corporation’s approval (and the approval/clearance of such other authorities as JTC may require).

Freight Links Express Holdings Limited (“Freight Links”) is one of the leading Logistics Management and Integrated Freight Forwarding Groups in Singapore. Established in 1981, the international freight forwarding business of the Group has links to almost 600 destinations throughout the world. Freight Links has offices in Malaysia, Thailand, Hong Kong, China, South Korea and United Arab Emirates. Sphere: Related Content

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