Sabana REIT’s divestment of a three-storey industrial building at 1 Tuas Avenue 4 has been called off, after the purchaser failed to secure the relevant approvals from JTC.
In an SGX filing, the REIT revealed that the buyer, Kim Soon Lee (Lim) Heavy Transport, has not received JTC’s approval and isn’t prepared to further extend the long stop date of the sale and purchase agreement.
In September, Sabana proposed to sell the industrial building for $11.18 million in cash, down 52 percent from the property’s $23.3 million book value as at 30 June.
The REIT believes the divestment – which was expected to be completed by the fourth quarter of its fiscal year ended 31 December – will improve its overall occupancy “from 84.5 percent to 87.5 percent as if the divestment occurred on 30 June 2018” as well as “deliver immediate cost efficiencies on all related expenses from the property”.
With a gross floor area of about 160,361 sq ft, the property has been vacant and remained uncompleted after its former “data centre” master tenant surrendered its lease agreement.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com