Ascendas Reit to divest Genting Lane property
Singapore
ASCENDAS Real Estate Investment Trust (Reit) is intending to sell its No 84 Genting Lane property to Axxel Marketing Pte Ltd for S$16.68 million, after it announced on Friday that it has completed the acquisition of its third suburban office property located in Queensland, Australia.
In a Singapore Exchange filing, Ascendas Funds Management (S) Ltd, the manager of Ascendas Reit, said that HSBC Institutional Trust Services (Singapore) Ltd, as the trustee of Ascendas Reit, has entered into a sale and purchase agreement with Axxel Marketing.
The proposed sale price of S$16.68 million is 66.8 per cent higher than the original purchase price of S$10 million. The market valuation of the property was S$15.8 million as at March 31, 2017, Ascendas Funds Management said.
Assuming the proposed divestment was completed on April 1, 2016, the pro forma impact on Ascendas Reit's net property income and distribution per unit for the financial year ended March 31, 2017 would have been a reduction of approximately S$1.2 million and 0.02 cent respectively. Net proceeds after divestment costs are expected to be S$15.3 million. The transaction is expected to complete within the first quarter of 2018.
Separately, Ascendas Funds Management said that Ascendas Reit has completed the acquisition of a suburban office property located in Queensland for A$106.2 million (S$110 million).
The annualised pro forma financial effect of all three acquisitions on FY16/17 distribution per unit would be an improvement of 0.026 Singapore cents. The latest acquisition will be funded through internal resources and/or existing debt facilities.
Ascendas Reit closed two Singapore cents lower, or 0.74 per cent, at S$2.68 on Friday.
