AMD’s Singapore subsidiary, Advanced Micro Devices (Singapore) Pte Ltd., has completed a transaction to sell and lease-back its Singapore facility to HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana REIT).
The transaction generated proceeds of approximately $46 million, net of all fees. AMD will record a gain of approximately $16 million related to the transaction in the third quarter of 2013.
AMD Singapore will continue its operations in a portion of the Singapore facility, and has commenced a 10-year lease agreement with Sabana REIT with extension options.
The sale of AMD’s Singapore facility is in keeping with AMD’s strategy to reduce investments and capital in non-core parts of the business, including real estate, says the company.
AMD launched operations in Singapore in 1984. In 2012, AMD Singapore completed its transformation from a high-volume manufacturing site to an engineering center of excellence and currently employs approximately 500 people.
[Image courtesy: AMD]
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