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CapitaLand Ascendas REIT to divest industrial building in Singapore
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