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AMD Announces Proposed Plan to Sell Singapore Facility

AMD has announced a proposed plan to sell off and lease back its Singapore facility. The news echoes AMD's decision to sell and lease back its "Lone Star Campus" in Austin, Texas to Southwest Parkway Holdings earlier this year.

AMD said Thursday that it had entered into a "conditional put-and-call option agreement" to sell and lease-back its Singapore facility to HSBC Institutional Trust Services. According to Advanced Micro Devices, the transaction is expected to generate approximately $46 million in proceeds (net of all fees), which will be reflected in AMD's third quarter 2013 financial statements.

Under the terms of the agreement, AMD Singapore will continue its operations in a portion of the Singapore facility under a 10-year sub-lease agreement with Sabana REIT. This sub-lease agreement would kick in upon the sale's closing. Before that can happen, AMD Singapore needs approval from the JTC, Singapore's entity for managing industrial infrastructure.

The move is part AMD's broader strategy to reduce investments and capital in non-core parts of the business. In March of this year, AMD entered into a transaction that saw the company sell its Austin, Texas campus to Southwest Parkway. AMD then leased it back on a 12-year agreement. That deal was said to generate approximately $164 million in cash for the chip maker.

  • Estix
    Good to see AMD doing what they can to stay in the fight :-)
    Reply
  • enewmen
    I hope a big-name chip maker like AMD stays in my neighbourhood :) Also like the geeky key chains made from faulty GLOBALFOUNDRIES APU yields..
    Reply
  • BringMeAnother
    I hope this was a decision they made to retarget their investement, instead of being forced to do so to stay solvent.
    Reply
  • Mousemonkey
    So all the money they are going to make from future console sales is not enough to them afloat eh?
    Reply
  • NightLight
    11415886 said:
    So all the money they are going to make from future console sales is not enough to them afloat eh?

    The profit on delivering console chips may not be that high. Remember that they have to support this chip for many years,
    that costs money too.
    Reply
  • Mousemonkey
    11415953 said:
    11415886 said:
    So all the money they are going to make from future console sales is not enough to them afloat eh?

    The profit on delivering console chips may not be that high. Remember that they have to support this chip for many years,
    that costs money too.

    Which is why Nvidia didn't bother with consoles this time around, unless you listen the fanATIc's.
    Reply
  • m32
    Someone with deep pockets needs to buy AMD. I hope they can make it by themselves, but things haven't been looking so good the past 2 1/2 years.
    Reply
  • jezus53
    Like AMD would jump into both consoles so they can take a loss. I'm sure they are making a little money on it, otherwise they wouldn't have jumped in. They may not be able to beat intel but they aren't stupid.
    Reply
  • NightLight
    11417071 said:
    Like AMD would jump into both consoles so they can take a loss. I'm sure they are making a little money on it, otherwise they wouldn't have jumped in. They may not be able to beat intel but they aren't stupid.

    I do think they will make money from it, but it won't be the kind of money to keep them afloat, without having some other strong products too. Nvidia has been down this path, and i do believe that they chose not to do it, rather then being overlooked.
    Reply
  • noob2222
    11417071 said:
    Like AMD would jump into both consoles so they can take a loss. I'm sure they are making a little money on it, otherwise they wouldn't have jumped in. They may not be able to beat intel but they aren't stupid.

    marketing usually costs money, AMD being in the consoles is more marketing than anything else. Miniscule profit + free marketing tool = win.
    Reply