Subsidiary of American computer processor manufacturer Advanced Micro Devices (AMD) Singapore announced that it has completed a transaction to sell and lease-back its Singapore facility located at 508 Chai Chee Lane, Singapore to Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana REIT) (SGX:M1GU). AMD has disposed off the property with the understanding that it will continue to rent and operate from a portion of the property.

High-tech industrial properties are a main feature of the Shari'ah compliant Sabana REIT's portfolio

The transaction generated proceeds of approximately S$59 million Singapore dollars for AMD. The company will continue its operations from the same premises and has commenced a 10-year lease agreement with Sabana REIT with options for extensions.

Sabana REIT has earlier indicated that it will be acquiring an industrial property at Chai Chee and has made a private placement for $40 million units in the REIT for the purchase.. Sabana REIT holds a portfolio of several high-tech properties in Singapore. Being a Shari'ah Compliant REIT, Sabana has concentrated its acquisition efforts on high tech industrial buildings and warehouses as a means of growth.

Units of Sabana REIT closed the trading day lower by about half a per cent at S$1.08 on the Singapore Exchange.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.