AMD announced it has completed its sale and lease-back operation of its facility in Singapore. The building was sold to the Singapore branch of HSBC for US$46 million and AMD entered a 10-year lease agreement.
AMD today announced that its Singapore subsidiary, Advanced Micro Devices (Singapore) Pte Ltd. (AMD Singapore), has completed a transaction to sell and lease-back its Singapore facility located at 508 Chai Chee Lane, Singapore 469032 to HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana REIT). The transaction generated proceeds of approximately SG$59 million Singapore dollars (US$46 million) net of all fees. AMD will record a gain of approximately US$16 million related to the transaction in the third quarter of 2013. AMD Singapore will continue its operations in a portion of the Singapore facility and has commenced a 10-year lease agreement with Sabana REIT with extension options.
The sale of AMD's Singapore facility is in keeping with AMD's strategy to reduce investments and capital in non-core parts of the business, including real estate. AMD launched operations in Singapore in 1984 and remains committed to the site as a vital part of the company's global operations. In 2012, AMD Singapore completed its transformation from a high-volume manufacturing site to an engineering center of excellence and currently employs approximately 500 people.