Singapore-listed industrial REIT, Cambridge Industrial Trust, will dispose a property at 55 Ubi Avenue 3 for SGD22.1 (USD15.5 million) to an undisclosed buyer.
The property, a five-storey light industrial building with approximately 141,135 square feet of gross floor area, has remaining land tenure of approximately 39 years.
According to a statement issued by the REIT on 23 January, the divestment originated from an unsolicited enquiry on the property.
“This divestment is in-line with [Cambridge Industrial Trust’s] FY2016 business strategy, focused on divestment of non-core properties and recycling capital for greater investment flexibility and better returns”, said the REIT.
The divestment will be subject to approval by Singapore’s Housing and Development Board, and is expected to take place in May 2017.
Proceeds from the divestment will be deployed towards the repayment of debt, other acquisition opportunities, asset enhancement initiative, and for working capital purposes, said the REIT.
Cambridge Industrial Trust announced on 18 January that a subsidiary of logistics property investment firm, e-Shang Redwood, was acquiring an 80% stake in its manager. (See related article: e-Shang Redwood’s acquisition of Singapore REIT manager signals regional ambitions)
The acquisition is largely seen as a precursor to the REIT’s expansion into the region.
Units of Cambridge Industrial Trust last traded on the Singapore Exchange at SGD0.56.