UMS Holdings says it plans to sell the property located at 27 Changi North Crescent Singapore 499618 to YFE-Clark Express for $6.98 milion and lease back parts of it.

As at 31 December 2010, the book value of the 7,610.6 square metres of leasehold land which consists of a JTC detached factory with adjoining single-storey and two-storey extensions, was $4.4 million. This means UMS will make a net gain of $2.5 million from the sale.

The property is currently being used by UMS for its manufacturing activities and as a warehouse. UMS says it is currently in negotiation with YFE-Clark Express to lease back certain areas of the property which will be used by the group as part of its ongoing manufacturing activities.

However, UMS intends to relocate the majority part of the group’s manufacturing activities to its factory at Penang, Malaysia, so as to reduce its operating costs.

UMS says the sale is in line with the group’s plan to realise its non-income generating assets after shifting its operations out of Singapore to lower costs manufacturing region. It intends to use the net proceeds from the sale as its working capital.