Aims Apac Reit divests Yishun property for S$12.9 million
Benjamin Cher
AIMS Apac real estate investment trust (AA Reit) announced that it is divesting 541 Yishun Industrial Park A in Singapore for S$12.9 million.
The Reit has entered into a sales and purchase agreement with Cantal United for the Yishun property. The S$12.9 million sale price is a 8.2 per cent premium on the property’s valuation of S$11.9 million as at Mar 31.
“This divestment is part of our proactive asset management strategy to optimise and rejuvenate AA Reit’s portfolio,” said Russell Ng, chief executive officer of AA Reit Management.
The Yishun property is a four-storey factory building with a total gross floor area of 8,770 square metres. AA Reit says that the property has limited redevelopment potential and a remaining land lease of 31 years as at Mar 31.
The manager is entitled to a divestment fee of 0.5 per cent of the sales price, in accordance with AA Reit’s trust deed. The divestment is targeted for completion by the third quarter of 2023, subject to JTC’s approval.
Post divestment, AA Reit’s portfolio will comprise 28 properties across Singapore and Australia.
“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,” said Ng.
Units of the AA Reit closed up S$0.01 or 0.7 per cent to S$1.38.
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