The call option to divest Figtree Grove Shopping Centre under Paragon REIT has been exercised by the purchaser, with a deposit of about A$9.6 million ($8.14 million) being paid to Figtree Trust according to a filing dated Jan 14.
This comes after Paragon REIT announced that it entered into a put and call option to divest Figtree Grove Shopping Centre at Wollongong, Australia on Nov 22, 2024 for A$192 million, a 5% premium above valuation.
The purchaser is an “unrelated party”, the release notes.
The release adds that the balance of divestment consideration will be paid by the purchaser in cash on completion of the divestment, which is expected to take place by 1QFY2025.
Upon completion, Paragon REIT will have three retail properties, Paragon, Clementi Mall and Westfield Marion. Singapore would account for 83% of net property income (NPI) and 87% of AUM.
UOB Kay Hian said on Dec 4 that Paragon REIT’s ongoing divestment of assets could be a precursor to a M&A.
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In June 2024, Paragon REIT divested Rail Mall for $78.5 million, above its last valuation and the purchase price of $63.2 million.
Paragon REIT closed 1 cent higher or 1.143% up at 88.5 cents on Jan 14.
