News
A-REIT And OSIM International To Enter Into A $35 Million Sale & Lease-Back Transaction
| A-REIT and OSIM International To Enter into a S$35 million Sale & Lease-back Transaction | |
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5 May 2003, Singapore - Ascendas Real Estate Investment Trust ("A-REIT") and OSIM International Ltd ("OSIM") today announced that Bermuda Trust (Singapore) Limited (as trustee of A-REIT) (the "Trustee") and OSIM have entered into a Put and Call Option Agreement in respect of the sale and lease-back of the OSIM Headquarters building located at 65 Ubi Avenue 1 Singapore 408939 (the "OSIM HQ") for a total purchase price of S$35 million. Under the terms of the Sale and Purchase Agreement to be entered into by the Trustee and OSIM upon the exercise of the Option Agreement, the Trustee will pay to OSIM S$25 million on completion of the sale and purchase of the OSIM HQ, expected in late July 2003. The balance of the purchase price of S$10 million will be paid in two equal instalments of S$5 million each on the first and second anniversary of the actual date of completion. The OSIM HQ comprises an 8-storey warehouse and office space with lettable area of 13,532 sqm. Built on a land area of 7,073 sqm, the property has a plot ratio of 2.5. The total land tenure is 60 years, with 54 years remaining. The OSIM HQ was recently valued at S$35 million by both Jones Lang LaSalle and Colliers International, appointed by OSIM and A-REIT respectively. OSIM HQ is located at 65 Ubi Ave 1, along the Pan Island Expressway (PIE) on the eastern side of Singapore. It has easy access to the Paya Lebar MRT Station and is within 15 minutes drive from the East Coast Park Expressway (ECP). Mr Goh Kok Huat, Chief Executive Officer of Ascendas-MGM Funds Management Limited, Manager of A-REIT said, "We are pleased to acquire this building and to enter into a long-term lease arrangement with OSIM, a well-established healthy lifestyle company. This acquisition will provide a stable growing income stream for A-REIT and extend its lease expiry profile." Dr Ron Sim, the Chairman and CEO of OSIM remarked, "The sale of OSIM HQ enables us to re-deploy our capital more efficiently to our healthy lifestyle businesses to generate higher returns. In the short term, we will use the sale proceeds to reduce our bank borrowings. A strong balance sheet will provide a good platform for future growth. With the sale, we have also secured a long term lease of 12 years for the use of the entire OSIM HQ at a market rate that reflects the current rental environment. That we have secured naming rights to a property that was purpose-built for us is an added attraction to us." The sale of OSIM HQ is subject to the approval of OSIM shareholders at an extraordinary general meeting to be convened by OSIM. | |
| About OSIM International Limited | |
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SGX mainboard-listed OSIM is a global leader in healthy lifestyle products. It is the leading Asian brand for healthy lifestyle products. Established in 1980, OSIM is a brand management and niche marketing company with a focus on the consumer. The OSIM Group is innovation-driven and is an IP (intellectual property) developer. OSIM uses innovative selling approaches and constantly enhances its innovation capabilities to produce successful products with superior designs, features and quality. As an IP developer, OSIM controls its brands, designs, technologies and concepts. Today, OSIM operates a wide point-of-sales network of over 400 OSIM outlets in Asia, the Middle East, United Kingdom and North America. Its business currently comes under four complimentary focuses. Together, these focuses reflect OSIM's holistic and integrated approach to healthy lifestyle. | |
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Health Focus is about helping you to make the right choices in managing your healthy lifestyle. |
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Hygiene Focus is about clean air, clean water and clean environment for your home and office. |
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Nutrition Focus is about supplementing your daily nutritional needs for a balanced diet. |
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Fitness Focus is about bringing the convenience of fitness to the comfort of your home. |
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OSIM Global Network: For more information, please visit www.osim.biz or contact us at ir@osim.com.sg | |
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Media Relations: | |
| About A-REIT | |
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A-REIT is the first business space and light industrial REIT listed on the Singapore Exchange. It has a diversified portfolio of eight properties comprising business park (including science park), light industrial and built-to-suit properties in Singapore, valued at approximately S$607.5 million (as at 31 March 2003). These properties house a tenant base of over 300 international and local companies operating in a range of industries and activities, including research and development, life sciences, information technology, engineering and light manufacturing. Tenants include Bioprocessing Technology Centre, Federal Express, Honeywell, Institute of Microelectronics, Lilly Systems Biology, Teradyne and Venture Corporation, just to name a few. The rental income from the tenants contributes to the stable distributions to be delivered by A-REIT. A-REIT is managed by Ascendas-MGM Funds Management Limited, a joint venture between Singapore-based Ascendas Investment Pte Ltd, a related company of Ascendas Land (Singapore) Pte Ltd, and Australian-based Macquarie Goodman Industrial Management Pty Limited. For more information, please visit our website: www.a-reit.com | |
| Ho Mei Peng Investor Relations Ascendas-MGM Funds Management Ltd Tel: +65 6774 9152 Mobile: +65 9668 8290 Email: meipeng.ho@ascendas-mgm.com | |
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Stephen Hawkins | |