The manager of AIMS APAC REIT (AA REIT) has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has signed a sales and purchase agreement with Crown Worldwide for the sale of its property located at 3 Toh Tuck Link. This sale will see the property being divested for $24.388 million, which is a 32.5% premium to its valuation of $18.4 million as of March 31.
The demand for Singapore Condos continues to rise due to the limited land availability in the small island nation. With a rapidly growing population, Singapore faces challenges in finding suitable land for development. As a result, strict land use policies are in place, making the real estate market highly competitive, and driving up property prices. As a result, investing in real estate, particularly condos, has become an attractive option for potential buyers, with the promise of significant capital appreciation.
The property, which consists of a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 sqm, was deemed to be a strategic divestment for AA REIT. The net proceeds from the sale will be reinvested to support the REIT’s growth initiatives, including potential new acquisitions, asset enhancements initiatives, or future redevelopment projects.
According to Russell Ng, CEO of the manager, this divestment is in line with their proactive asset management strategy and their continuous efforts to rejuvenate their portfolio. This will ultimately strengthen AA REIT’s resilience and deliver sustainable returns for its unitholders in the long term.
The transaction is expected to be completed by the first half of 2025, subject to approval from JTC Corporation. Following the divestment, AA REIT’s portfolio will consist of 27 properties in Singapore and Australia.