Singapore-listed ESR-REIT, announced on 6 July that it will be divesting the remaining leasehold interest in 87 Defu Lane 10 for SGD17.4 million (USD12.5 million)
The six-storey light industrial building is being sold to machining company NC Precision Pte Ltd, and the proposed transaction originated from an unsolicited enquiry, said the REIT which was formerly known as Cambridge Industrial Trust.
87 Defu Lane 10 is situated within the Defu Industrial Estate and features a gross floor area of approximately 109,920 square feet, with a remaining land tenure of approximately 33 years.
“This divestment is in-line with ESR-REIT’s FY 2017 business strategy, which includes the divestment of non-core properties and recycling of capital for greater investment flexibility and better returns”, said ESR-REIT in its statement on the divestment.
Proceeds from the sale will be used for the repayment of debt, acquisition opportunities, asset enhancement initiatives, or for working capital purposes, the REIT added.
The transaction is subject to approval by the Housing & Development Board, and is expected to take place in the third quarter of 2017.
Units of ESR-REIT last changed hands on the Singapore Exchange at SGD0.605.