by Anton Shilov
09/26/2013 | 11:23 PM
Advanced Micro Devices said Thursday that its Singapore subsidiary has completed a transaction to sell and lease-back its Singapore facility located to HSBC institutional trust services.
The transaction generated proceeds of approximately $46 million net of all fees. AMD will record a gain of approximately $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.
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.
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.