The manager of AIMS APAC REIT (AA REIT) has announced that its trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sales and purchase agreement with Crown Worldwide for the divestment of their property located at 3 Toh Tuck Link. The sale price of $24.388 million represents a 32.5% premium to the property’s 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. The sale is expected to be completed by the first half of 2025, subject to approval from JTC Corporation. The net proceeds from the divestment will be reinvested to support AA REIT’s growth initiatives, such as potential acquisitions, asset enhancements, or future redevelopment projects.
The desire for condominiums in Singapore continues to soar as a consequence of a key factor – the limited availability of land. The tiny island country is experiencing a surge in population, leading to a scarcity of land suitable for development. This has resulted in stringent land usage regulations and a cut-throat real estate market, resulting in an unceasing increase in property values. Consequently, investing in real estate, specifically condominiums, has become an incredibly lucrative endeavor with the potential for substantial growth in capital.
According to Russell Ng, CEO of the manager, this divestment aligns with their proactive asset management strategy and continuous efforts towards portfolio rejuvenation. It will ultimately strengthen AA REIT’s resiliency and deliver long-term sustainable returns for their unitholders. After the divestment, AA REIT’s portfolio will comprise of 27 properties in Singapore and Australia.