Singapore-listed industrial landlord Ascendas REIT (A-REIT) (SGX:A17U) has completed the proposed divestment of a two-storey warehouse complex at 6 Pioneer Walk to Singapore logistics and renewable energy company GKE Private Limited. The property which was bought in 2007 for S$22.5 million was sold away for S$32 million, netting a cool 42.2 percent premium over the initial purchase price for Ascendas REIT.

With the latest divestment Ascendas REIT now owns 102 properties in Singapore and 1 business park  property in China

The property, which has a book value of S$24.6 million as at 31 March 2013, has remaining land tenure of about 23 years. A-REIT has clarified that he sale resulted from an unsolicited enquiry from GKE Private Limited.

With the sale, A-REIT’s proforma gross revenue and net property income would have reduced by S$1.9 million and S$1.6 million respectively for FY12/13.

A-REIT has indicated that sale proceeds from this divestment may be used to repay existing indebtedness or for general corporate and working capital purposes. But it has also hinted that the proceeds may be distributed to unit holders of A-REIT.

Meanwhile units of Ascendas REIT have slid to its lowest levels since July 16 2012. They ended the trading day 2.6 percent lower to finish at S$2.19.