A-REIT divests 6 Pioneer Walk for S$32.0m

Ascendas Real Estate Investment Trust (A-REIT) has entered into an agreement to sell its property at 6 Pioneer Walk for S$32 million to Chasen Logistics Services, a subsidiary of Chasen Holdings.

The sale price is at a 42 per cent premium over the original purchase price of S$22.5 million in 2007.

A-REIT’s manager, Ascendas Funds Management, said in a statement that the divestment is in-line with its “proactive asset management strategy where it seeks to regularly review and rejuvenate its portfolio.”

The property has a remaining land tenure of about 24 years. it has a 2-storey warehouse with a ramp-up driveway and a 4-storey ancillary office.

It also has a single-storey workshop and a container yard with a gross floor area of about 20,100 square metres.

With the sale, A-REIT said its proforma net property income would reduce by S$1.78 million for FY2011/12.

The transaction is expected to be completed by end June 2012, following which AREIT will own 100 properties in Singapore and 1 in China.

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