Accordia Golf Trust said on Monday it planned to sell the Village Higashi Karuizawa Golf Club for 200 million yen, or around S$2.42 million, to an unrelated third party.
“Based on the historical performance and future outlook of the golf course, the divestment of the golf course would be beneficial to AGT and be in line with AGT’s overall portfolio management strategy,” the trust said in a filing to SGX after the market close on Monday.
The net proceeds may be used to fund potential acquisitions, reducing existing debt and/or other general corporate purposes, Accordia Golf Trust said.
The 18-hole golf course, located in Annaka City, Gunma Prefecture, in Japan, was valued at 27.5 million yen, or around S$332,166, at end-December by independent valuer CBRE, the filing said.
The sale isn’t expected to have a material impact on the trust’s net asset value per unit and the distribution per unit for the financial year ending 31 March 2020, Accordia Golf Trust said.
The divestment is expected to be completed on 3 June, the trust said.