ESR-REIT has completed the divestment of two properties — 11 Serangoon North Avenue 5 and 3C Toh Guan Road East — for around S$53 million, the REIT said in a filing to SGX Tuesday.
Based on independent valuations at end-September, the sale consideration is a 3 percent premium to the S$51.5 million total fair value of the properties and a 7.1 percent premium to their total acquisition price, ESR-REIT said.
“In line with our proactive portfolio optimisation strategy to monetise non-core assets, proceeds from these divestments will be channelled towards value creation opportunities to improve the quality of our portfolio,” Adrian Chui, CEO of the REIT’s manager, said in the statement.
“With greater financial flexibility, we will continue to seize attractive growth opportunities to deliver greater income growth to unitholders,” he added.
The REIT said the net proceeds would be used to repay outstanding borrowings and/or fund upcoming asset enhancements, potential acquisitions, unit buybacks and general working capital requirements.
After the divestments, the REIT’s portfolio has 56 properties in Singapore, the filing said.
In August, ESR-REIT said it had entered a deal to divest the general industrial property at 45 Changi South Avenue 2 in Singapore for S$11.1 million.