Bookmark & Share
ALOG Changi DistriCentre 2 has a total gross floor area of 111,359 sq ft, and comprises a three-storey cargo lift warehouse and adjoining four-storey office block. Source: Google Maps
ARA LOGOS Logistics Trust Management Limited has entered into a sale and purchase agreement with PGI Holdings for the sale of ALOG Changi DistriCentre 2 for $16.7 million.
In an SGX filing on Thursday (22 April), the manager of ARA LOGOS Logistics Trust (ALOG) revealed that the proposed sale consideration is about 7.7% above the $15.5 million valuation by CBRE as of 31 December 2020.
It explained that the divestment is in line with the trust’s “proactive asset management strategy, which includes selective divestment of low-yielding and lesser-performing properties with limited potential”.
Sale proceeds will be used to improve financial flexibility and build a more resilient and quality portfolio.
With the net proceeds from the sale standing at around $16.3 million, ARA Logos is expected to recognise an estimated divestment gain of about $0.8 million over the latest book value.
Completed in 1998, ALOG Changi DistriCentre 2 comprises a three-storey cargo lift warehouse with an adjoining four-storey office block. It has a total gross floor area of 111,359 sq ft and was part of ARA Logos’ initial public offering portfolio.
“This proposed divestment of ALOG Changi DistriCentre 2 will allow ARA Logos to unlock and redeploy capital into other higher-performing assets and achieve operational efficiencies,” said Karen Lee, Chief Executive of ARA LOGOS Logistics Trust Management Limited.
The proposed divestment, which is subject to JTC’s approval, is expected to be completed by the first half of this year.
The manager does not expect the divestment to materially affect ARA Logos’ net asset value and net property income for the financial year 2021.
Looking for a property in Singapore? Visit PropertyGuru’s Listings, Project Reviews and Guides.
Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg
Related Articles:
70% of Asia Pacific bosses want staff back in office, says CBRE
Grade A offices may lead recovery in Singapore’s office market
75% of workers opt to return to office in full-time next year