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A-REIT divests BBR Building at Changi for S$13.9m

ASCENDAS Real Estate Investment Trust (A-REIT) is divesting its 17-year-old BBR Building at Changi for S$13.9 million - more than double the original purchase price of S$6.8 million in 2005.

A-REIT's manager, Ascendas Funds Management, on Thursday announced that HSBC Institutional Trust Services (in its capacity as trustee of A-REIT) has entered into an agreement with BBR Holdings for the proposed sale of the remaining leasehold interest in 50 Changi South Street 1.

The property is a part 2-storey and part 3-storey light industrial building, with a gross floor area of 6,501sqm.

"The proforma impact of the divestment on A-REIT's net property income and distribution per unit for the financial year ended March 31, 2015 is approximately S$0.86 million and 0.03 cents respectively, assuming the divestment was completed on April 1, 2014," said A-REIT in announcement.

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The proposed sale originated from an unsolicited enquiry from BBR - the parent company of Singapore Piling & Civil Engineering. The latter is the existing tenant at BBR Building.

The proposed sale is subject to approval by JTC Corporation, and is expected to be completed by end of June this year.