Hyflux Ltd has agreed to sell its Hyflux Innovation Centre located on Singapore’s Bendemeer Road to Ascendas Real Estate Investment Trust for S$170 million and lease back the property for 15 years.
After the divestment, Hyflux will remain the major tenant and retain naming rights for the property.
Hyflux says that in line with the group’s capital utilisation strategy, the divestment will free up funds for more productive use of capital.
The released capital will be used to acquire new technology and investments in R&D, expand and automate the group’s membrane manufacturing operations in Tuas Hub to increase productivity, and to finance the group’s infrastructure project tenders.
Hyflux executive chairman and group CEO Olivia Lum said: “The sale and lease-back transaction is part of our capital recycling strategy to enhance the efficiency of our balance sheet and to redeploy capital for strategic investments. Hyflux Innovation Centre will continue to be the nerve centre of our global operations and we intend to remain at Hyflux Innovation Centre for the longterm.”