Aims Apac Reit Sell 3 Toh Tuck Link
The joint venture partners have recently declared plans for the forthcoming development of Parktown Residence on June 27. This highly-anticipated project will consist of approximately 1,190 new residential units, as well as an array of retail and community facilities, carefully curated to cater to the lifestyle demands of the expanding Tampines North community. As stated by the partners, the new Parktown Residence will seamlessly blend into the surrounding neighborhood.
The manager of AIMS APAC REIT (AA REIT), Russell Ng, has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sales and purchase agreement with Crown Worldwide for the divestment of its property located at 3 Toh Tuck Link. This strategic decision is in line with AA REIT’s proactive asset management strategy and continuous efforts towards portfolio rejuvenation.
The sale consideration of $24.388 million represents a significant 32.5% premium to the property’s valuation of $18.4 million as at March 31. The property, which consists of a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 sqm, has attracted strong interest from the market.
According to Ng, the net proceeds from the divestment will be reinvested to support AA REIT’s various growth initiatives. This includes potential new acquisitions, asset enhancement initiatives, or future redevelopment projects. Ng believes that this move will not only strengthen AA REIT’s resilience but also deliver long-term sustainable returns for its unitholders.
The divestment is expected to be completed by the first half of 2025, subject to JTC Corporation’s approval. With this transaction, AA REIT’s portfolio will consist of 27 properties across Singapore and Australia. This diversification will help to mitigate risks and maintain a strong financial position for the REIT.
In conclusion, the sale of the property at 3 Toh Tuck Link is a strategic move that aligns with AA REIT’s focus on portfolio rejuvenation and proactive asset management. The premium sale consideration will provide the REIT with the necessary funds to support its growth initiatives and create long-term value for its unitholders.