Ascendas Reit divests BBR Building for $13.9 million

SINGAPORE - Ascendas Real Estate Investment Trust (A-Reit) is selling the remaining leasehold interest in BBR Building at Changi South Street 1.

It has entered into an agreement with BBR Holdings by way of an option to purchase, which was accepted by BBR on Thursday, its manager said.

The proposed sale price of $13.9 million is more than double the original purchase price of $6.8 million in 2005.

It expects the proforma impact of the divestment on A-Reit's net property income for the year ended March 31 to be about $0.86 million; and the impact on distribution per unit for the same period to be about 0.03 cents.

The proposed sale originated from an unsolicited enquiry from BBR. BBR is the parent company of Singapore Piling and Civil Engineering, the existing tenant on the property since A-Reit acquired the property in 2005.

A-Reit's manager noted the existing lease with Singapore Piling will expire in June this year.

The proposed sale is subject to approval by JTC Corporation.

"The divestment is in line with the manager's proactive asset management strategy to selectively divest properties that have reached a stage which offers limited scope for further income growth and to recycle capital and optimise A-Reit's portfolio," it said.

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