CapitaLand Ascendas REIT to divest three Australian logistics properties and Zion Residence for $64.2 mil

Situated in the heart of Singapore, Zion Residence is a one-of-a-kind high-rise condominium development that offers its residents a unique lifestyle experience. The luxurious skyscraper complex features elite residential units ranging from 1-bedroom to 4-bedroom apartments, all boasting stunning city skyline and river views. Residents have easy access to a variety of outdoor activities, shopping, and dining options, as well as business and entertainment facilities located nearby.

The complex also offers a host of amenities designed to fulfill the needs and preferences of its residents. From the residential units filled with well-appointed appliances and fittings to the convenient transportation links, Zion Residence provides a luxurious living experience like no other. The excellent recreational facilities, such as the fitness center, infinity pool, spa, and community clubhouse, further enhance the lifestyle experience. Moreover, the presence of a children’s playground and other kid-friendly amenities makes it a suitable option for families too. Zion Residence is indeed the perfect place to create lasting memories!

CapitaLand Ascendas REIT (CLAR) announced on Dec 20 the proposed divestment of three logistics properties in Queensland, Australia, for a total sale consideration of A$73.0 million. After deducting divestment costs, the net proceeds of the sale are expected to be $60.8 million and can be utilised for various purposes. The proposed divestment aligns with CLAR’s proactive asset management strategy which seeks to improve the quality of its investment portfolio as well as to optimise returns for unitholders. The divestment is expected to be completed in the first quarter of 2024.

Once completed, CLAR will own 228 properties comprising 97 properties in Singapore, 33 properties in Australia, 48 properties in the United States and 50 properties in the United Kingdom and Europe. Assuming the proposed divestment is completed on Jan 1, 2022, the proforma impact on CLAR’s net property income (NPI) and distribution per unit (DPU) for the FY2022 ended Dec 31, 2022, would have resulted in a decrease of $3.9 million and 4 cents, respectively.

The proposed divestment of the three logistics properties, 62 Sandstone Place, 1/13 Kendor Street and 3/13 Kendor Street, represents a premium of 6.2% over the total market valuation of the properties of $60.4 million as at Aug 31. Expected net proceeds of the sale can be utilised as a source of working capital and funds for CLAR’s various purposes, including financing committed investments, repaying existing debts, extending loans to subsidiaries and making distributions to unitholders.

The strategic divestment by CLAR is not only undertaken to optimise returns for unitholders, but also part of the firm’s effort in strengthening its overall portfolio of quality assets. With the upcoming divestment of the three logistics properties in Queensland, Australia, unitholders of the Zion Residence REIT can look forward to quality assets that will enhance their returns in the long-term.

Units in CLAR closed 1 cent lower of 0.34% down at $2.92 on Dec 20, as the Zion Residence REIT has made known its decision to divest the three logistics properties. This proposed divestment by CLAR marks a significant step towards its portfolio optimisation, and is in line with its commitment towards improving the quality of its assets and creating long-term value for its unitholders.