AIMS AMP Capital Industrial REIT (AA REIT) has sold its property at 10 Soon Lee Road for $8.17 million.
With a net lettable area of 7,224.20 sq m, the property comprises a detached single-storey industrial building and a four-storey industrial building with an ancillary office block. It has a remaining lease tenure of less than 24 years.
In an SGX filing, the trust revealed that the sale price represents a 28 percent premium over the property’s latest valuation of $6.4 million.
It noted that the divestment is in line with “manager’s proactive asset management and capital recycling strategies to strengthen AA REIT’s capital structure and optimise returns for unitholders”.
AA REIT said it intends to use the $8.0 million net proceeds to “repay existing debt to reduce aggregate leverage and create additional debt headroom for future acquisitions, asset enhancement initiatives or development opportunities”.
The divestment brings AA REIT’s properties in Singapore to 25, while holding a 49 percent interest in one property in Australia.