Mapletree Industrial Trust (MIT) is disposing of 19 Changi South Street 1 for SGD13 million in cash.

The asset, which has been in the REIT’s portfolio since its initial public offering (IPO), is being sold to Esco Micro Pte Ltd, which is an unrelated third party.

The property was valued at SGD11.9 million as at 5 November 2021 and contributed about 0.2% to MIT’s portfolio gross revenue in the financial year ended 31 March 2021.

The net proceeds from the proposed divestment will be deployed to fund committed investments and working capital requirements or reduce existing debt, said the REIT.

The two-storey light industrial asset has a gross floor area of about 82,737 square feet with a four-storey extension block located within the Changi South Industrial Estate.

It is sited on a land area of about 67,513 square feet with a 30-year land lease commencing from 16 November 1996 and an option to extend for another 30 years.

The property has been vacant since September 2021 following the lease expirations of its anchor tenants.

MIT has assessed that it would be difficult to secure a suitable mix of anchor tenants in nearterm.

Given its relatively small land area, it would not be economically viable to redevelop the site, the REIT opined.

The divestment is subject to approval by JTC Corporation and is expected to complete by the first half of 2022.

MIT was last done on the SGX at SGD2.65, which presently implies a distribution yield of 5.24% according to data on the Singapore REITs table.