The divestment is part of the manager’s proactive portfolio management strategy and is in line with its objective to unlock value in Paragon REIT’s portfolio. The valuation of the Property was $62 million as at Dec 31, 2023. The net proceeds from the divestment will be deployed to pare down outstanding debt obligations, finance potential acquisitions and asset enhancement initiatives, and/or make distributions to unitholders.
The divestment is not expected to have a material impact on the REIT’s net asset value and distribution per unit for the financial year ending Dec 31, 2024. The divestment is scheduled for completion in 2HFY2024. Upon completion of the divestment, Paragon REIT’s portfolio will comprise four assets in Singapore and Australia. Singapore, underpinned by core assets, Paragon and The Clementi Mall, will remain a significant component of the REIT’s portfolio, contributing approximately 80% to its net property income and assets under management.
Paragon REIT believes that it remains well positioned to seek yield-accretive opportunities for future growth.
Units in Paragon REIT closed 0.6% higher on June 20 at 84 cents.
