Saturday, July 18, 2009

Cambridge Reit drops purchase of property

CAMBRIDGE Industrial Trust is not taking up an option to buy and lease back a $55.2 million industrial property at Tai Seng Street.

The vendor, Natural Cool Holdings, announced the termination of the option agreement yesterday.
Cambridge, which was to have secured equity financing for the purchase by June 30, informed Natural Cool that it was not proceeding with the purchase.

Natural Cool secured shareholder approval for the sale back in November 2007. The plan was to sell Lot 6501T at Tai Seng Street/Tai Seng Avenue to Cambridge and to lease back the property at not more than 8 per cent of the purchase price a year. The lot had leasehold interest for 30 years with an option to renew for a further 30 years.

The agreement was later delayed after certain changes in the terms and conditions were agreed.

Source: Business Times, 18 July 2009

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