Metro Holdings is divesting its stake in a retail property in Western Australia through its holdings in a portfolio of property holdings, and is set to gain $4.1 million.
Metro owns a 30% stake in a portfolio of 18 freehold properties in Australia, through its ownership of 30% of units in SLH Property Trust, Sim Lian Property Trust and Sim Lian Property Trust II. It also owns 30% of Sim Lian — Metro Capital (SLMC), the asset management company for Metro’s Australia Portfolio.
The wholly-owned subsidiary of SLMC, has on Nov 6, divested its stake in Dalyellup Shopping Centre in Western Australia to an independent third party for a gross sale consideration of A$35.8 million.
Following this, the total appraised value of Metro’s Australia portfolio with Sim Lian will be approximately A$1,361 million, consisting of 17 quality freehold properties (comprising 5 office buildings and 12 retail centres) with a total NLA of 169,811 square metres spanning New South Wales, Victoria, Queensland and Western Australia.
The estimated net sale proceeds from the divestment is approximately A$16.0 million, and Metro’s 30% share of the net sale proceeds is approximately A$4.8 million, or $4.1 million.
SLMC says that the divestment is in line with its portfolio reconstitution and capital recycling for the portfolio under its management. SLMC will deploy net sale proceeds for general corporate purposes including repayment of bank borrowings and return of capital to shareholders.
See also: Kimly’s subsidiary to acquire 12 Haig Road coffee shop for $11.8 million
Shares in Metro closed 1.5 cents higher or 2.804% up at 55 cents on Nov 6.
