Mapletree Industrial Trust (MINT) has agreed to divest 115A & 115B Commonwealth Drive (the Tanglin Halt cluster) for a consideration of $50.6 million.
MINT’s trustee had entered into a sale and purchase agreement (SPA) on Feb 6 to a third-party purchaser.
The amount is higher than the valuation of $48.7 million – derived independently – as at Dec 31, 2023, and 8.4% higher than the book value of $46.7 million as at the FY2022/2023 ended March 31, 2023.
The Tanglin Halt cluster contributed about 0.7% to MINT’s gross revenue in the FY2022/2023 ended March 31, 2023. The cluster comprises a five-storey flatted factory and a two-storey flatted factory with an amenity centre. It has a total gross floor area of 254,443 sq ft and a land area of 99,765 sq ft. The land has a lease of 56 years commencing from July 1, 2008.
The sale proceeds may be used to fund committed investments, reduce existing debt and/or make distributions to unitholders.
“The sale of the Tanglin Halt Cluster will provide MINT with greater financial flexibility to pursue other growth initiatives. We will continue to explore opportunities to rebalance the portfolio through divestments of non-core assets,” says Tham Kuo Wei, CEO of the manager.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
Units in MINT closed flat at $2.42 on Feb 6.
