Ascendas Real Estate Investment Trust (Reit) is selling a two-storey ramp-up warehouse building along Changi South Street 1 to minimart chain operator Hao Mart for S$20.3 million, the fund manager announced on Monday.
The sale price for 25 Changi South Street 1 is 14 per cent more than the original purchase price of S$17.8 million, and 2 per cent higher than the property’s market valuation of S$19.9 million as at Dec 31, 2019.
The 19-year-old building has a gross floor area of 13,998 square metres, and has a remaining land lease tenure of about 37 years.
The divestment is expected to be completed within the first quarter of 2020, and net proceeds after divestment costs are expected to be S$19.6 million. The proceeds may be recycled to fund committed investments, repay existing debts, extend loans to subsidiaries, fund general corporate and working capital needs and/or make distributions to unitholders.
The proposed divestment is in line with the Reit manager’s asset management strategy to improve the quality of the Reit’s portfolio and optimise returns for unitholders. It is not expected to have any material effect on the Reit’s net asset value and distribution per unit for the financial year ending Dec 31, 2020.