The manager of AIMS APAC REIT (AA REIT) has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has recently entered into a sales and purchase agreement with Crown Worldwide for the divestment of their property located at 3 Toh Tuck Link.
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According to the manager, the sale consideration of $24.388 million represents a significant increase of 32.5% from the property’s valuation of $18.4 million as at 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.
In addition, the net proceeds from the divestment are expected to be reinvested to support AA REIT’s various growth initiatives. These may include potential new acquisitions, asset enhancement initiatives, or future redevelopment projects. This aligns with the REIT’s proactive asset management strategy and continuous efforts to rejuvenate its portfolio, ultimately strengthening its resiliency and delivering long-term sustainable returns to its unitholders.
CEO of the manager, Russell Ng, states, “This divestment is in line with our continuous effort towards portfolio rejuvenation and supports our goal to deliver strong returns for our unitholders over the long term.”
The divestment is expected to be completed by the first half of 2025, subject to JTC Corporation’s approval. After the divestment, AA REIT’s portfolio will consist of 27 properties across Singapore and Australia.