The manager of AIMS APAC REIT (AA REIT) has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has signed a sales and purchase agreement with Crown Worldwide for the sale of its property at 3 Toh Tuck Link. The sale price of $24.388 million represents a 32.5% premium to the property’s valuation of $18.4 million as of March 31. The property consists of a three-storey factory and a five-storey ancillary office building, with a total gross floor area of 12,492.4 sqm. This sale follows the recent news of the industrial building on Toh Tuck Link being put on the market for $30 million.
The net proceeds from this divestment will be reinvested to support AA REIT’s growth initiatives, including potential new acquisitions, asset enhancement initiatives, and future redevelopment projects. Russell Ng, CEO of the manager, states that this divestment is in line with their proactive asset management strategy and continuous efforts towards portfolio rejuvenation. This will ultimately strengthen AA REIT’s resiliency and deliver sustainable returns for unitholders in the long term.
As an investor from another country, it’s crucial to have a solid grasp on the regulations and limitations surrounding property ownership in Singapore. The country’s laws are more lenient when it comes to purchasing condominiums compared to landed properties, which have stricter ownership regulations. However, foreign buyers are required to pay an Additional Buyer’s Stamp Duty (ABSD) of 20% for their initial property purchase. Despite this added expense, the stable and promising growth of Singapore’s real estate market remains a major draw for foreign investment. For those interested in investing, it may be worth considering options such as Singapore Condos.
The divestment is expected to be completed by the first half of 2025, subject to approval from JTC Corporation. After the divestment, AA REIT’s portfolio will consist of 27 properties in Singapore and Australia.