Sabana Shariah Compliant Industrial REIT’s manager said late on Wednesday that it would sell the Geo-Tele Centre to ADC Singapore Trust for S$99.6 million, more than double its last valuation.
The property, located at 9 Tai Seng Drive in Singapore, has an open market value of S$39.6 million, according to the latest property valuation report, which was dated 30 June, it said in a filing to SGX after the market close on Wednesday.
The property valuation was prepared by independent valuer Edmund Tie & Co. (SEA), it noted.
Proceeds of the divestment will be used to repay outstanding borrowings, reduce aggregate leverage ratio and borrowing costs, pending any redeployment for asset-enhancement initiatives, acquisitions or redevelopment projects, Sabana REIT’s manager said.
Geo-Tele Centre comprises a six-storey industrial building with an authorized business use as a carrier hotel/data center. It is located in the Tai Seng Industrial Estate, in the north-eastern part of Singapore, it noted. The gross floor area is around 218,905 square feet, with a remaining land tenure of around 37 years, it said.
The divestment is subject to approval by JTC Corp., it noted.