SINGAPORE (Feb 28): Sabana REIT is divesting 6 Woodlands Loop for a consideration of $13.8 million.

The sale consideration is about 7.0% above the property’s book value of $12.9 million as at Dec 31 2017, based on the valuation performed by an independent valuer, Suntec Real Estate Consultants.

The property is a three-storey general industrial building with an ancillary office and mezzanine extension, with a gross floor area (GFA) of about 77,544 sq ft, which represents 1.8% of the trust’s current portfolio GFA.

The property was acquired on Dec 15 2011 for $14.8 million.

The group will use the proceeds from the divestment to repay its outstanding borrowings, or to explore options to optimise returns to unitholders such as value-accretive acquisitions – particularly in high-spec assets and business parks, asset enhancement initiatives, or other relevant growth opportunities.

The REIT’s manager will be waiving the entire divestment fee of 0.5% or $69,000, which it is entitled to under the trust deed.

The purchaser has paid 10.0% of the consideration or $1.38 million. The balance will be paid in cash upon completion of the divestment.

Units in Sabana REIT closed at 40 cents on Wednesday.