SINGAPORE (EDGEPROP) - Ascendas Real Estate Investment Trust (Ascendas Reit) has entered into a sale and purchase agreement to divest its warehouse property at 25 Changi South Street 1 for $20.3 million.
According to Ascendas Funds Management (S), the manager of Ascendas Reit, the buyer is convenience store chain Hao Mart. The two-storey, ramp-up building has a gross floor area of 150,673 sq ft, with a remaining land lease tenure of about 37 years.
The proposed sale price of $20.3 million for the property is 14% higher than the original purchase price of $17.8 million, and it is 2% higher than its market valuation, which was $19.9 million as at Dec 31 last year.
According to the manager, this divestment is in line with its asset management strategy to improve the quality of Ascendas Reit’s portfolio and optimise returns for unitholders.
Net proceeds after divestment costs are expected to be $19.6 million. The manager is entitled to a divestment fee of 0.5% of the sale price of the property, which would be paid in cash.
The divestment, done through the Reit’s trustee, HSBC Institutional Trust Services (Singapore), is expected to be completed before April this year. Ascendas Reit will subsequently own 96 properties in Singapore. It also holds 35 properties in Australia, 38 in the UK, and 28 in the US.