“The net proceeds from the divestment for Paragon REIT’s 85% interest in the property of approximately $142.0 million will provide the manager with greater financial flexibility to repay debt, to finance any capital expenditure, asset enhancement works and/or acquisitions, distribute to unitholders and/or to finance general corporate and working capital requirements,” says the manager of the REIT.
Figtree Grove Shopping Centre is a sub-regional shopping centre located on 19 & 23 Princes Highway, Figtree, Wollongong, NSW 2525, Australia. It is located approximately 5.5km southwest of the Wollongong Central Business District and approximately 70km southwest of the Sydney Central Business District.
The property sits on a freehold land area of 51,366 sqm, and has a total gross lettable area of 21,984 sqm with 921 carpark lots.
Upon completion of the divestment, Paragon REIT’s portfolio will comprise three prime retail properties across Singapore and Australia, underpinned by core assets, Paragon and The Clementi Mall, both located in Singapore.
According to the manager, Paragon and The Clementi Mall contribute approximately 83% and 87% of Paragon REIT’s net property income and assets under management respectively.
Paragon REIT holds a 99-year leasehold interest in Paragon that commenced on July 24, 2013 and a 99-year leasehold interest in The Clementi Mall that commenced on Aug 31, 2010. These Singapore properties have an aggregate net lettable area of approximately 914,000 sq ft.
In Australia, Paragon REIT also owns a 50% freehold interest in Westfield Marion Shopping Centre, the largest regional shopping centre in Adelaide, South Australia.
See also: Results
Earlier this month, Paragon REIT reported gross revenue of $223 million for 3QFY2024 ended Sept 30, up 3% y-o-y.
Units in Paragon REIT closed 0.5 cents lower, or 0.58% down, at 86.5 cents on Nov 22.
