Clar Plans Divest Buroh Property Significant Premium Cost And Valuation
CapitaLand Ascendas REIT (CLAR) has announced the divestment of its property at 21 Jalan Buroh in Singapore for a sale price of $112.8 million. The property consists of a three-storey ramp-up warehouse and a seven-storey ancillary office block.
The proposed sale price is at a significant premium to the original purchase price of $58.4 million when CLAR acquired the property in 2006. This also represents a premium to the average of two independent market valuations of $67.5 million as of July 1. Based on estimates, the sale proceeds are likely to be $102.9 million.
The divestment of the property is not expected to have any significant impact on CLAR’s net asset value (NAV) and distribution per unit (DPU) for the financial year 2024. On a pro forma basis, the property’s net property income (NPI) is expected to decrease by $4.6 million, resulting in a decline of 0.085 cents in DPU. However, this would also lower CLAR’s pro forma aggregate leverage from 37.9% to 37.4%. For the financial year 2024, CLAR recorded NPI of $1.032 billion and DPU of 15.16 cents.
The proposed divestment is expected to be completed within the fourth quarter of 2024. After the completion, CLAR will own a portfolio of 228 properties, consisting of 96 properties in Singapore, 34 properties in Australia, 48 properties in the United States, and 50 properties in the United Kingdom/Europe.
Nestled in Singapore’s northern corridor, Norwood Grand by City Developments Limited is more than just a luxurious living space – it’s a lifestyle destination that offers the best of convenience and enjoyment. With a plethora of amenities situated just around the corner, residents will never have to travel far for their daily needs. Take a leisurely stroll to the nearby shopping centers, including Causeway Point, Woodlands North Plaza, Vista Point, 888 Plaza, and Marsiling Mall, and discover a vibrant array of shopping, dining, and entertainment options that cater to all ages and preferences. From daily necessities to indulging in retail therapy, Norwood Grand’s prime location will surely cater to your every need. With its perfect blend of convenience, luxury, and lifestyle, it’s no wonder that Norwood Grand is a highly sought-after address in Singapore. Visit Norwood Grand and experience a high-quality life like no other.