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Ascendas Real Estate Investment Trust (A-REIT) is selling the BBR building at 50 Changi South Street 1 for S$13.9 million, the company announced in an SGX filing.
The proposed sale price is more than double the property’s original purchase price of S$6.8 million in 2005. The buyer BBR Holdings is the parent company of Singapore Piling & Civil Engineering, which has occupied the property since A-REIT’s acquisition 10 years ago.
“The divestment is in line with Ascendas Funds Management’s proactive asset strategy to selectively divest properties that have reached a stage which offers limited scope for further income growth and to recycle capital and optimise A-REIT’s portfolio,” the company said.
The BBR building is a part two-storey and part three-storey light industrial building with a gross floor area of 6,501 sq m. The building, located at Changi South Street, is approximately 17 years old and has a remaining land tenure of about 42 years. It is also equipped with two separate lifts for goods and passengers.
Subject to JTC Corporation’s approval, the transaction is expected to be completed by end-June. After the building’s disposal, A-REIT will still have 103 properties in Singapore and two business park properties in China.
The proceeds from the divestment may be used to fund committed investments, repay existing debts, finance loans to subsidiaries, fund general corporate & working capital needs, and/or make distributions to unitholders, it added.
Image: BBR building. (Source: A-REIT)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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