CapitaLand said its Ascott Residence Trust or Ascott REIT has entered into an agreement to sell a rental housing property, Country Woods, in Jakarta for S$33.9 million.
It said this is the highest price submitted in a competitive bidding process and is 60 per cent above the property’s valuation as at June 30.
It added that Ascott REIT is expected to enjoy an estimated net gain of S$5.7 million from the divestment.
CapitaLand also said the transaction is expected to be completed in the fourth quarter this year.
Mr Lim Jit Poh, chairman of Ascott Residence Trust Management, said the sale proceeds will provide Ascott REIT with greater financial flexibility to maximise returns to unitholders.
He also said the proceeds will be used to pare down the group’s debt or for funding future acquisitions.
Capitaland said Country Woods contributed about S$400,000 or one per cent to Ascott REIT’s gross profit in the first half of this year.
Source : Channel NewsAsia – 6 Aug 2010