ESR-REIT has completed the divestment of a property for a sale consideration of $6.8 million, according to a bourse filing on March 24.
The property is 1 Third Lok Yang Road and 4 Fourth Lok Yang Road, and the sale consideration represents a 3.5% premium above its valuation of $6.6 million.
The group said that the net proceeds of the divestment will be deployed to repay outstanding borrowings, finance potential acquisitions, asset enhancement initiatives and redevelopments and or fund general working capital requirements.
It 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, 2025.
The REIT’s portfolio now stands at 71 properties, excluding 48 Pandan Road held through a joint venture. Its properties are located in Singapore, Japan and Australia.
Units in ESR-REIT closed 0.5 cents lower or 2% down at 24.5 cents on March 24.
