1 Tuas Avenue 4 (Photo: Google Maps)

Sabana REIT has entered into a sale and purchase agreement to divest its property at 1 Tuas Avenue 4, for SGD11.18 million (USD8.1 million).

The sale consideration is 52% below the below the property’s current book value of SGD23.3 million as at 30 June 2018, as valued independently by Knight Frank via the capitalisation approach, and discounted cash flow analysis method.

However, more recent independent valuations have determined a market value of between SGD11.1 million and SGD10.9 million as at 14 September 2018, using the market comparables approach, the REIT explained.

The divestment has been done as part of Sabana REIT’s new strategy, as reported by REITsWeek in April 2018.

Read: Sabana REIT lays out refreshed strategy to improve occupancy, rents

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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.