CapitaLand has sold a group of companies that own and manage its StorHub self-storage business for $179.5 million to an undisclosed buyer.
The total amount includes $167.5 million in outstanding shareholder loans owed by the group of companies to StorHub Group. This has been assigned to the buyer, who will pay in stages.
StorHub Group will continue to be wholly owned by CapitaLand post-divestment.
The remaining $12 million is the equity component for the shares of the group of companies, which will be paid in stages and is subject to post-completion adjustments.
CapitaLand said the deal is based on an agreed value of $185 million for StorHub's 12 self-storage properties. It has 11 facilities in Singapore and one in Shanghai, with a total lettable area of about 800,000 sq ft.
Mr Jason Leow, president and chief executive of Singapore and International at CapitaLand, said the divestment of StorHub is "in line with CapitaLand's disciplined approach towards capital recycling".
"Our portfolio optimisation allows us to prioritise our capital allocation to our core markets and sectors," he added.
"In 2018, CapitaLand divested $4 billion worth of assets and deployed $6.11 billion into new investments. We will stay disciplined in recycling our assets... with an annual divestment target of at least $3 billion."