The management team of AIMS APAC REIT (AA REIT) has recently announced that its REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sales and purchase agreement with Crown Worldwide for the sale of its property located at 3 Toh Tuck Link. This divestment is part of the REIT’s ongoing efforts to proactively manage its assets and strengthen its portfolio.
The agreed sale price of $24.388 million represents a significant 32.5% premium to the property’s valuation of $18.4 million as of March 31. The property is comprised of a three-storey factory and a five-storey ancillary office building, with a total gross floor area of 12,492.4 sqm.
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According to the CEO of the manager, Russell Ng, the net proceeds from the divestment will be reinvested to support AA REIT’s growth initiatives, such as potential new acquisitions, asset enhancement initiatives, or future redevelopment projects. This decision is in line with the REIT’s strategy of continuously rejuvenating its portfolio and strengthening its resilience to deliver sustainable returns for its unitholders.
The divestment is expected to be completed by the first half of 2025, subject to approval from JTC Corporation. Upon completion, AA REIT’s portfolio will consist of 27 properties in Singapore and Australia.
In conclusion, the divestment of the property at 3 Toh Tuck Link is a strategic move by AA REIT to further strengthen its portfolio and generate long-term sustainable returns for its unitholders. This reflects the REIT’s commitment to proactive asset management and continuous efforts toward portfolio rejuvenation.