CapitaLand Ascendas REIT divests local industrial building at 219% premium from 2005 purchase price
CLAR manager has decided to divest the KA Place property in Singapore at a 219% premium to its purchase price of $11.1 million in 2005. For a consideration of $35.38 million, HSBC Institutional Trust Services (Singapore) has entered into a sale and purchase agreement with KA Place SPV 1.The seven-storey high-specification industrial building offers 10,163 sq m in total gross floor area and a remaining land lease tenure of approximately 35 years. According to the manager, the divestment is in line with the REIT’s active asset management policy and is meant to improve its portfolio and optimise returns for unitholders.
If the divestment is completed on Jan 1, 2022, the pro-forma impact on the REIT’s net property income and distribution per unit would be a reduction of $0.92 million and 0.005 Singapore cents respectively. The net proceeds are estimated to be $30.65 million, which could be used to fund committed …
Read More