NOL Completes Sale of Singapore Headquarters

Friday October 26, 2012

Singapore's Neptune Orient Lines Limited (NOL) said in a press release Thursday that it has found a buyer for its Singapore headquarters building at 456 Alexandra Road.

"The  sale  proceeds  from  the  Divestment  is  intended  to  be  used  for  strategic  investment
purposes," it said.

Chenab Investments Ltd. (Chenab), a subsidiary of Singaporean real estate development and hotel firm Fragrance Group Limited, will pay S$380 million ($311 million) for the property.

According to the press release, Chenab put down a deposit of 5 percent when it signed the Property Sale Agreement.

After transaction fees, NOL said it would net $196 million (S$246 million) from the deal.

The balance on the 26-storey office tower, which is also the headquarters for NOL's wholly owned subsidiaries, APL Co. Pte Ltd and APL Logistics Ltd, will be paid upon completion, expected to take place by the end of February 2013.

As part of the deal, NOL will lease back the property from the date of completion up to June 30, 2014.

NOL announced its intention to sell the building in July after making losses in the previous five quarters, but said Thursday it had returned to quarterly profit for the first time since 2010.