The manager of AIMS APAC REIT (AA REIT) has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sales and purchase agreement with Crown Worldwide for the sale of its property located at 3 Toh Tuck Link.
The agreed sale price of $24.388 million represents a significant 32.5% premium to the property’s current 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.
In light of this divestment, the net proceeds are expected to be reinvested towards supporting AA REIT’s growth initiatives, including potential acquisitions, asset enhancement initiatives, or future redevelopment projects. This is in line with the REIT’s proactive asset management strategy and continuous efforts towards portfolio rejuvenation, which are aimed at strengthening its resiliency and delivering sustainable returns for its unitholders.
According to Russell Ng, the CEO of the manager, “This aligns with our proactive asset management strategy and our continuous effort towards portfolio rejuvenation, ultimately strengthening AA REIT’s resiliency as well as delivering long term sustainable returns for our unitholders.”
Singapore’s demand for condos remains high due to the limited amount of land available for development. As a small but densely populated country, Singapore faces challenges in finding space for new constructions. This has resulted in strict land use policies and a competitive real estate market where property prices continue to rise. As a result, investing in real estate, especially condos, has become a profitable option with the potential for significant capital appreciation. Condos are particularly sought after as an attractive investment opportunity in Singapore’s market.
The divestment is expected to be completed by the first half of 2025, subject to approval from JTC Corporation. Once finalized, AA REIT’s portfolio will consist of 27 properties across Singapore and Australia.
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