CapitaLand Ascendas REIT (CLAR) has entered into an agreement for the sale of KA Place, 159 Kampong Ampat in Singapore, to KA Place SPV 1 for a consideration of S$35.38 million ($26.5 million).
KA Place is a seven-story, high-specification industrial building with a total gross floor area of 10,163 square meters (109,394 square feet).
CLAR said the sale consideration represents a 219 percent premium to the original March 2005 purchase price of S$11.1 million ($8.3 million) and a 55 percent premium to the market valuation of the property of S$22.8 million ($17 million), as of Dec. 31, 2022.
CLAR will deploy the capital toward value-adding opportunities. The net proceeds of the sale — which are expected to be S$30.65 million ($23 million) — may be recycled to fund-committed investments, repay existing debt, extend loans to subsidiaries, fund general corporate and working capital needs and/or make distributions to unitholders.
The proposed divestment is
