ESR REIT has completed the divestment of its remaining leasehold interest in 87 Defu Lane 10 to NC Precision Pte. Ltd.
Located within the Defu Industrial Estate, the property is a six-storey light industrial building, with a gross floor area of around 109,920 sq ft and a remaining land tenure of around 33 years.
In an SGX filing, the REIT’s manager revealed that the property was divested for a consideration of $17.5 million, excluding divestment costs as well as applicable goods and services tax, if any.
It noted that the price represents a premium of about 0.6 percent above the property’s $17.4 million current book value and a 34.0 percent gain over its $13.06 million purchase price in 2006.
“This divestment is consistent with the manager’s proactive asset management strategy to divest non-core properties and recycle capital for greater investment flexibility and better returns,” it said.
“The sale proceeds from the divestment may be used for the repayment of debt, acquisition opportunities, asset enhancement initiatives and/ or for working capital purposes,” it added.
With the completion of the divestment, ESR-REIT now owns a portfolio of 47 properties within the city-state.
This article was edited by Keshia Faculin.