The manager of ESR-LOGOS REIT (E-LOG) has entered into a contract of sale to divest 70 Seletar Aerospace View for $7.1 million.
The space, which is located at Seletar Aerospace Park, has a gross floor area of 4,992 sqm. The property is about eight years and has a remaining tenure of 19 years.
The divestment amount is said to be at a 4.8% premium to the property’s valuation. As at Dec 1, Knight Frank conducted an independent valuation on the property and found it to be worth $6.8 million.
The divestment is not expected to have a material impact on the REIT’s net asset value (NAV) and distribution per unit (DPU) for the FY2022 ending Dec 31.
The net proceeds from the divestment will be used for outstanding borrowings. It may also be used to fund the REIT’s general working capital requirements.
The divestment is expected to be completed in the 2QFY2023 and is subject to JTC Corporation’s approval.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
Units in E-LOG REIT closed 1 cent or 2.6% down at 37.5 cents on Dec 19.
