SINGAPORE (June 4): Spindex Industries is surrendering its lease at its industrial property at 6 Neythal Road, which is located in the Jurong West region of Singapore, to JTC Corporation for $3.7 million after accounting for reinstatement costs. 

The property’s market value is $4.07 million. Spindex says the consideration sum was arrived at in view of general market conditions, and that no other offer was made in the last 18 months despite it being actively marketed.

In a Monday filing, Spindex explains it has decided to sell 6 Neythal Road as it not a core asset of the group, and is no longer needed for the company’s operations.

The transaction is expected to have a positive impact on the group’s earnings for the current financial year, it adds, while proceeds will be used to improve Spindex’s overall cash position as well as strengthen its balance sheet.

Shares in Spindex closed 2 cents higher at 86 cents on Monday.