ESR-REIT property at 23 Tuas Avenue 10. (Photo: ESR-REIT)ESR-REIT property at 23 Tuas Avenue 10. (Photo: ESR-REIT)

Singapore-listed industrial REIT, Cambridge Industrial Trust, announced on 11 April that it intends to dispose the remaining leasehold interest in a four-storey property located at 23 Tuas Avenue 10 for SGD16.5 million.

The sale represents a premium of approximately 5% above the current book value of SGD15.7 million and close to double the original purchase price of SGD8.55 million in 2006, said the REIT.

Proceeds from the sale of the property will be used to repay debt, fund asset enhancement initiatives and potential acquisition opportunities, it added.

“This divestment is consistent with Cambridge Industrial Trust’s FY2016 strategy, focused on recycling capital for greater investment flexibility and better returns, said Philip Levinson, CEO of the REIT’s manager.

“The strategic recycling of capital will strengthen our portfolio and put Cambridge Industrial Trust in a premium position relative to peers, which will in turn allow us to remain competitive in an increasingly challenging environment”, he added.
According to the REIT, Cambridge Industrial Trust’s The Manager’s strategy for FY2016 will focus on four key areas. These are divestment of non-core assets, asset enhancement initiatives for existing assets, repaying debt and reducing gearing, and acquisition of quality assets both locally and overseas.

Subject to regulatory approval from JTC Corporation, 23 Tuas Avenue 10 is expected to be divested by June 2016.

Units of Cambridge Industrial Trust are currently trading on the Singapore Exchange at SGD0.55.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.