SATS sells Singapore express centre to DHL

Singapore Airport Terminal Services Limited (SATS) has announced that it has sold SATS Express Courier Centre Two (ECC2) to DHL Express (Singapore) Pte Ltd (DHL) for S$38 million. Purpose-built by SATS for DHL’s Singapore hub operations, ECC2 is located within the Singapore Changi Airport Free Trade Zone and has a total floor area of about […]


Singapore Airport Terminal Services Limited (SATS) has announced that it has sold SATS Express Courier Centre Two (ECC2) to DHL Express (Singapore) Pte Ltd (DHL) for S$38 million.

Purpose-built by SATS for DHL’s Singapore hub operations, ECC2 is located within the Singapore Changi Airport Free Trade Zone and has a total floor area of about 18,000 square metres.

The facility has been largely occupied by DHL on a long-term licence since September 2001, with SATStaking an area of about 940 square metres for its maintenanceof some groundhandling equipment.

Following the sale, DHL will lease the same space in ECC2 to SATS to continue its maintenance operations, the company said.

The cash consideration of $38 million was agreed upon, on a willing buyer-willing seller basis, after taking into consideration the open market value of ECC2, the companies said. Based on the latest available valuation commissioned by SATS, the open market value of ECC2 as at 1 December 2007 was S$35 million.

"We are pleased to note the agreement between SATS and DHL on the sale of ECC2. We welcome DHL’s continued investment in express cargo handling facilities at Changi Airport and look forward to its continued growth in Singapore. DHL’s purchase of the ECC2 signals its commitment to expanding its business at Changi. SATS’ role in facilitating this transaction demonstrates the importance it places on service to its customers, and exemplifies the good cooperation within the air cargo community to improve cargo handling in Singapore," said Lim Kim Choon, director-general & CEO of the Civil Aviation Authority of Singapore (CAAS).