SINGAPORE: Shares of Singapore's Stamford Land, which owns and operates luxury hotels, rose as much as 12 percent on Tuesday after it said it had signed a memorandum of understanding (MOU) to sell three properties for A$316 million, traders said.
At 0227 GMT, shares of Stamford Land were 8.7 percent higher at S$0.50 with 985,000 shares changing hands. Thi was 2.2 times its average daily volume over the last five sessions.
Stamford Land said on Monday it has signed a MOU for the sale of three of its hotels in Australia, and will continue to manage and operate the hotels under long-term lease-back arrangements.
"The company could potentially be looking at booking significant profits as they are selling the properties above their book values," said a local trader.
Stamford Land said the net book value of the three hotels at the end of June was A$148.7 million.
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