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ESR-REIT has completed the divestment of 9 Bukit Batok Street 22 to MSS Bukit Batok for $239 million.
In an SGX filing, the trusts revealed that the consideration “represents a premium of approximately 1.3 percent above the current book value of $23.6 million as at 31 December 2017 and a 30.6 percent gain over the purchase price of $18.3 million in 2007”.
Nestled on a 67,360 sq ft site, the property is a five-storey warehouse industrial building that comes with ancillary office and basement carpark. It has a gross floor area of around 157,860 sq ft and a remaining land tenure of about 35 years.
It noted that the divestment is in line with on-going efforts of the trust to “rejuvenate its portfolio by recycling capital released from the divestments of lower yielding non-core assets to better quality yield-accretive acquisitions which will benefit unitholders in the long term”.
ESR-REIT said it intends to use the sale proceeds for potential acquisition opportunities, repayment of debt, asset enhancement initiatives and/or for working capital purposes.
The divestment brings ESR-REIT’s current properties in Singapore to 47.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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