Xpress Sells Office Building For $14m To MI-Reit

Source : The Business Times, 16 November 2007

XPRESS Holdings Ltd, which prints financial reports, is selling an industrial office building for $14 million to MacarthurCook Industrial Real Estate Investment Trust (MI-Reit).

The sale of the Kallang Way property will result in an excess of approximately $2.9 million over the net book value based on the latest announced consolidated accounts, Xpress said.

Xpress will lease the property back for an initial seven-year period with an option to renew the lease for another seven years. The company said that the transaction will help fund expansion.

Chief executive Sam Chong Keen said: 'This sale of the building at $14.0 million, together with the recently announced $25.0 million convertible bond deal with Credit Suisse, as well as the $21.5 million raised last year from a share placement exercise, provide a solid financial platform for Xpress to grow its core business further.'

For MI-Reit, the deal - with an initial net yield of 7 per cent - will be accretive to its distribution per unit following completion.

MI-Reit also said that independent annual revaluations of the six properties in its initial portfolio have been completed, resulting in a $9.8 million increase in book value. The Reit's investments have increased to a total value of $592.7 million in 20industrial properties.