SINGAPORE (Oct 11): Precision engineering firm Miyoshi has entered into a sale and purchase agreement to dispose of its factory property at 5 Second Chin Bee Road for $7.8 million.

The single-storey detached factory, which sits on leasehold land spanning 4,883.8 sq m, is currently used for cold storage and as a corporate office.

The group says it plans to sell the property as it is underutilised. “The proposed disposal will see the optimal release of value from the asset as a strategic imperative,” Miyoshi adds in a filing to SGX on Wednesday.

The proceeds from the proposed disposal will represent an excess of around $4.2 million over the book value of the property, as at end-May.

Miyoshi says it intends to use the net proceeds to reduce borrowings as well as to provide working capital for the company.

Completion of the proposed disposal is subject to approval from Jurong Town Corporation (JTC).

Shares in Miyoshi closed 0.3 cent lower at 7.3 cents on Wednesday.