CapitaLand Ascendas REIT is divesting its asset at 159 Kampong Ampat in Singapore for SGD35.38 million.

The asset, KA Place, is a seven-storey high-specification industrial building with a car park on the second storey.

The asset has a total gross floor area of 10,163 square metres and has a remaining land lease tenure of about 35 years.

The sale consideration represents a 219% premium to the original March 2005 purchase price of SGD11.1 million and a 55% premium to the market valuation of SGD22.8 million as at 31 December 2022.

The divestment is not expected to have any material impact on the REIT’s net asset value and distribution per unit (DPU) for the financial year ending 31 December 2023.

The proforma impact on the REIT’s net property income and DPU for the financial year ended 31 December 2022 would have been a decrease of SGD0.92 million and 0.005 Singapore cents, respectively.

Net proceeds after divestment costs are expected to be SGD30.65 million, and these may be recycled to fund committed investments, repay existing indebtedness, extend loans to subsidiaries, or fund general corporate and working capital needs, said the REIT.

The divestment is expected to complete within the second quarter of 2023.

Upon completion, the REIT will own a portfolio of 229 properties comprising 96 properties in Singapore, 36 properties in Australia, 48 properties in the United States, and 49 properties in the UK and Europe.

CapitaLand Ascendas REIT was last done on the Singapore Exchange at SGD2.88, which presently implies a distribution yield of 5.47% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.