Consolidation of Singapore property portfolio

RNS Number : 3157K

Inchcape PLC

24 June 2014

 



24 June 2014

Inchcape plc

Consolidation of Singapore property portfolio - Completion of sale of 24 Leng Kee Road

Further to our announcement on 28 April 2014, Inchcape plc ("Inchcape" or the "Company"), the leading premium automotive group, is pleased to announce that Champion Motors (1975) Pte. Ltd. (a wholly-owned Singapore subsidiary of the Company) has completed the sale of 24 Leng Kee Road, Singapore (the "Property") to Wealth Assets Pte. Ltd. for SGD 46.2 million. Profit on the sale is SGD 36.0 million.

André Lacroix, Group Chief Executive of Inchcape plc, commented:

"In anticipation of a Singapore New Car market recovery in 2014, we reviewed our property portfolio in Singapore and decided to relocate the current Body and Paint operation at 24 Leng Kee Road to our Pandan facility, where we plan to consolidate several consumer and non-consumer facing activities to increase our capacity and productivity. This follows the modernisation of our flagship facility at 33 Leng Kee Road with the opening in June last year of the new Lexus Boutique and Toyota World showrooms, which have set new benchmarks in customer service excellence, design and technology.

"As highlighted at our Capital Markets Day in April, Inchcape is well positioned in Singapore to seize attractive growth opportunities as we look towards a market recovery. Furthermore, the disposal of 24 Leng Kee Road demonstrates Inchcape's disciplined capital allocation policy as it will release a significant amount of capital tied up in our current Singapore property portfolio which will be partially reinvested in the redevelopment of our Pandan facility in the next few years."

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Group Communications, Inchcape plc

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Investor Relations, Inchcape plc

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FTI Consulting (Jonathon Brill/Edward Westropp)

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