Continue reading this on our app for a better experience

Open in App
Home News REITs

AIMS APAC REIT divests 541 Yishun Industrial Park A for $12.9 mil

Felicia Tan
Felicia Tan • 2 min read
AIMS APAC REIT divests 541 Yishun Industrial Park A for $12.9 mil
541 Yishun Industrial Park A. Photo: AA REIT's website
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

AIMS APAC REIT O5RU -

has divested 541 Yishun Industrial Park A for $12.88 million. The sale price represents an 8.2% premium to the property’s valuation of $11.9 million as at March 31.

The sale was made via a sale and purchase agreement (SPA) between the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, and Cantal United Pte Ltd.

The net proceeds from the divestment will be used to repay the REIT’s debt initially and may be recycled for asset enhancement initiatives (AEIs), redevelopment opportunities and selective acquisitions.

The property is a four-storey factory building with a total gross floor area of 8,770 sqm (94,399.49 sq ft) on a land site of 6,851 sqm. According to the REIT manager, the property has limited redevelopment potential with a remaining land lease tenure of about 31 years as at March 31.

The REIT manager is entitled to a divestment fee of 0.5% of the sale price in accordance with the REIT’s trust deed. The divestment is targeted to be completed by the third quarter of 2023.

Following the divestment, AA REIT’s portfolio will comprise 28 properties across Singapore and Australia.

See also: Paragon REIT to divest The Rail Mall for $78.5 mil

This divestment is part of our proactive asset management strategy to optimise and rejuvenate AA REIT’s portfolio. Amid the current macroeconomic uncertainties, we remain focused on various organic growth initiatives, which cumulatively, will continue to underpin our strong operating performance and long-term income resilience of AA REIT,” says Russell Ng, CEO of the manager.

Units in AA REIT closed 1 cent higher or 0.73% up at $1.38 on April 24.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.