CapitaLand Ascendas REIT (CLAR) is proposing to divest 95 Gilmore Road, a logistics property in Queensland Australia for a consideration of $90 million.
The property is a single-storey logistics property with a total gross floor area of 41,318 square metres. It is located approximately 22 kilometres south of the Brisbane Central Business District.
The sale consideration represents a 9.5% over the independent market valuation of approximately $82.2 million as at Sept 30, and a premium of 17.2% to the original purchase price of approximately $76.8 million at which CLAR acquired the property in October 2015.
Including this divestment, CLAR has about $396 million worth of ongoing divestments expected to be completed in 4QFY2025.
The estimated net proceeds after divestment costs from the proposed divestment are expected to be $83.4 million. CLAR says the proceeds may be utilised for various purposes including financing committed investments, paying down debt, extending loans to subsidiaries, funding general corporate and working capital needs, and/or making distributions to unitholders.
“Together with the three divestments completed earlier, these transactions amount to $498.0 million in FY2025 and underscore our disciplined capital recycling strategy to maintain financial flexibility and liquidity for accretive investment opportunities,” says William Tay, executive director and CEO of the manager.
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“This approach is complemented by our portfolio reconstitution strategy to enhance CLAR’s portfolio quality, as demonstrated by our recently announced proposed acquisition of three well-located properties with strong lease profiles in Singapore for $565.8 million.”
Assuming net proceeds were used to repay CLAR’s borrowings as at Sept 30, the pro forma aggregate leverage would be about 39.5%. The proposed divestment is expected to be completed within 4QFY2025, after which CLAR will own 228 properties 5 comprising 97 properties in Singapore, 33 properties in Australia, 49 properties in the United States and 49 properties in the United Kingdom/Europe.
Units in CLAR closed 2 cents higher or 0.709% up at $2.84 on Nov 11.
