Singapore-listed Ascendas REIT has entered into a sale and purchase agreement to dispose a business park property in Shanghai for USD228.1 million (USD 163 million).

The business park, A-REIT City @ Jinqiao, was acquired by Ascendas REIT in 2013 for SGD122.3 million.

The property will be sold to a Chinese investment company known as Wkland Investments II Limited, and effected via a purchase in all of Ascendas REIT’s equity interest in a company that owns A-REIT City @ Jinqiao.

The agreed attributable value of the property is SGD221.6 million, said the industrial REIT, putting the purchase consideration at a premium of about SGD6.5 million, excluding related transactions costs.

The divestment is expected to complete in 3Q FY16/17, the REIT added in its statement on 27 October.

Units of Ascendas REIT finished the trading day about 0.4% lower from its previous close on the Singapore Exchange to end at SGD2.39.