14 DAY TRIAL // Corporations own lots of facilities, but sometimes they call upon other for manufacturing and research help. Other times, they sell their facilities for some reason or another.
One common practice is to sell and lease-back certain factories.
Basically, they sell a factory but keep using it afterwards under a lease agreement that acts as a sort of rent paid to whoever buys it, only eventually the seller will regain ownership. Like a payment in installments.
AMD did something of this sort, more or less, entering a conditional put-and-call option agreement to sell and lease-back its Singapore facility located at 508 Chai Chee Lane, Singapore 469032.
The buyer is HSBC Institutional Trust Services (Singapore) Limited, a trustee of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana REIT).
The transaction will earn AMD 59 million Singapore dollars (USD$46 million / €34 million).