SINGAPORE (Oct 5): Far East Group has entered into a sale and leaseback agreement with Moduslink for the property at 51 Ubi Avenue 3.

Far East is acquiring the property for $22.5 million, after which Moduslink will lease back the entire third floor of the building, measuring up to about 75,000 sf, for $135,000 per month.

Far East says the acquisition will help consolidate its operations which are currently being carried out at various locations in Singapore.

The entire property has a gross floor area of about 167,692 sf with a leasehold tenure of 60 years from Jan 1, 1990.

The acquisition will be funded through existing cash and bank borrowings.

Shares in Far East closed at 8.1 cents on Thursday.