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Ascendas Real Estate Investment Trust (Ascendas Reit) has agreed to sell No. 30 Old Toh Tuck Road to Soon Bee Huat Trading for $24 million.
With a gross floor area of 16,353 sq m, the five-storey ramp-up logistics building has an occupancy of 86.1 percent as at 31 December 2017 and 39 years left on its land lease.
In an SGX filing, the trust explained that the divestment is “in line with the manager’s proactive asset management strategy to improve the quality of Ascendas Reit’s portfolio and optimise returns for unitholders”.
In fact, the $24 million sale price is 22.4 percent higher than the property’s original purchase price of $19.6 million and 18.2 percent up from its $20.3 million market valuation as at 31 March.
It intends to use the $22.9 million net proceeds to “fund committed investments, repay existing indebtedness, extend loans to subsidiaries, and/or fund general corporate and working capital needs”.
Ascendas Reit expects the divestment, which has been approved by JTC Corporation, to be completed by the second quarter of 2018. Thereafter, the trust will own 99 Singapore properties and 31 properties in Australia.
The manager will be entitled to a divestment fee of 0.5 percent of the property’s sale price, which would be paid in cash, it added.
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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