The property includes a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 sqm.
Net proceeds from the divestment are expected to be reinvested to support AA REIT’s various growth initiatives, such as potential new acquisitions, asset enhancements initiatives or future redevelopment projects.
Russell Ng, CEO of the manager, says: “This aligns with our proactive asset management strategy and our continuous effort towards portfolio rejuvenation, ultimately strengthening AA REIT’s resiliency as well as delivering long term sustainable returns for our unitholders.”
The divestment is set to be completed by the first half of 2025, subject to JTC Corporation’s approval.
See also: SGX gives approval-in-principle to FHT to delist
Following the divestment, AA REIT’s portfolio will comprise 27 properties across Singapore and Australia.
Units in AA REIT closed 1 cent higher, or up 0.8%, at $1.26 on Dec 10.
