SembEnviro KK Asia Enters Into Put & Call Option Agreement For Sale & Leaseback Of Property At Tampines Street 92

Singapore, Dec 18, 2006

SembCorp Industries Ltd (“SembCorp”) announces that SembEnviro KK Asia, a subsidiary of SembCorp’s wholly-owned SembCorp Environmental Management, has entered into a Put and Call Option Agreement (“option agreement”) with HSBC Institutional Trust Services, as trustee of Mapletree Logistics Trust (“MapletreeLog”), for the sale and leaseback of its property at 9 Tampines Street 92, Singapore 528871.
 
Under the option agreement, MapletreeLog has been granted a call option by SembEnviro KK Asia to purchase the aforementioned property, while SembEnviro KK Asia has been granted a put option to require MapletreeLog to purchase the property. The sale of the property is expected to be completed within three months subject to conditions precedent being fulfilled.
 
Upon completion, the proceeds from the transaction would be S$11.0 million. The net book value of the property as of December 2006 is S$6.2 million. The difference between the proceeds and the fair value of the property will be amortised over the 10-year leaseback period.
 
This transaction does not have any material financial impact on SembCorp for the financial year ending December 31, 2006.
 

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By Order of the Board
Kwong Sook May
Company Secretary
 
 
For media & analysts’ queries, kindly contact:

Ms. April Lee
Vice President
Group Corporate Relations
DID: +65 6723 3160
Fax: +65 6822 3240
Email: april.lee@sembcorp.com.sg 

Ms. Ng Lay San
Senior Manager
Group Corporate Relations
DID: +65 6723 3150
Fax: +65 6822 3240
Email: laysan@sembcorp.com.sg


About SembCorp Industries

SembCorp Industries Ltd is a leading utilities and marine group. The Group provides centralised utilities & energy to industrial customers in Singapore, the United Kingdom, Asia and the Middle East. It is a global leader in marine & offshore engineering and also a provider of environmental management services in the region.
 
SembCorp Industries has total assets of over S$7 billion and employs more than 8,000 employees.
 
Listed on the main board of the Singapore Exchange, SembCorp Industries is a component stock of the Straits Times Index and several MSCI indices.

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