Global transportation and logistics company Neptune Orient Lines (NOL) today announced the sale of a landmark office building in Jersey City, NJ, USA, for US$24 million.

The sale of the 11-storey 11,500 sq m (123,792 sq ft) building at No.15 Exchange Place to Hartz Mountain Industries Inc. is part of the NOL Group's continued strategic divestment of non-core assets and businesses.

NOL Group CFO, Lim How Teck, said the strength of the market exceeded the company's expectations.

The sale of the wholly-owned historic office building, situated on the Hudson Waterfront, which dates back to the early 1900s, will realise a profit of US$500,000 in addition to a write-back on provision of US$4.8 million. In total the sale will result in a positive bottom line impact of US$5.3 million for the NOL Group in FY2003, Mr Lim said.

He said the proceeds would be applied to reduce debt, in line with the company's stated objectives to strengthen its balance sheet and unlock value for shareholders.

The building, which was valued at US$20.2 million in March this year, formerly housed some of the business operations of NOL subsidiary American Eagle Tankers (AET), which was sold in July. The building was surplus to NOL's requirements, Mr Lim said.

The sale was conducted by leading US real estate firm, CB Richard Ellis.