Stock News: Enviro-Hub signs 54.9 mln sgd property sale-and-leaseback deal

Electronics waste recycler Enviro-Hub Holdings Ltd (formerly Leong Hin Holdinsg) said it has signed a 54.9 mln sgd sale-and-leaseback deal for its two properties with Australia's MacarthurCook Property Investment Pte Ltd. Under the deal, Enviro-Hub will sell its leasehold industrial properties in Gul Way and Tuas Ave 2 for 54.90 mln sgd to MacarthurCook. Upon completion of the sale, expected in the first half of 2007, both properties will be leased back to Enviro-Hub for 10 years, with an option to renew for another five years. Enviro-Hub said it will book an exceptional gain of 37.4 mln sgd from the deal. Proceeds from the divestment will be used to repay bank borrowings and provide additional working capital for the group's expansion plans, it said.