The manager of AIMS APAC REIT (AA REIT) has announced the sale of its property at 3 Toh Tuck Link. The REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sales and purchase agreement with Crown Worldwide for the divestment.
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The sale consideration of $24.388 million is a 32.5% premium to the property’s valuation of $18.4 million as of March 31. The property consists of a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 sqm.
This divestment aligns with AA REIT’s proactive asset management strategy and efforts towards portfolio rejuvenation. The net proceeds of the sale will be reinvested to support the REIT’s growth initiatives, including potential new acquisitions, asset enhancement initiatives, or future redevelopment projects.
Russell Ng, CEO of the manager, states, “This divestment is in line with our continuous effort towards portfolio rejuvenation and strengthens AA REIT’s resiliency, delivering long-term sustainable returns for our unitholders.”
The divestment is expected to be completed by the first half of 2025, subject to approval from JTC Corporation. After the divestment, AA REIT’s portfolio will consist of 27 properties in Singapore and Australia.