The manager of AIMS APAC REIT (AA REIT) has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sales and purchase agreement with Crown Worldwide for the divestment of its property at 3 Toh Tuck Link. The sale consideration for the property is $24.388 million, which is a significant 32.5% premium to its valuation of $18.4 million as of March 31. The property consists of a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 sqm.
For international investors, being familiar with the laws and limitations surrounding property ownership in Singapore is crucial. In general, foreigners have few restrictions when it comes to buying condominiums, unlike landed properties which have stricter regulations. However, foreign buyers must pay the ABSD, currently set at 20%, for their initial property acquisition. Despite the extra expenses, the stability and potential for growth in the Singapore real estate market continue to attract foreign investments. In fact, Singapore condos remain a highly desirable option for foreign investors.
The net proceeds from the divestment will be reinvested to support AA REIT’s growth initiatives, including potential new acquisitions, asset enhancements, or future redevelopment projects. CEO of the manager, Russell Ng, states that this aligns with their proactive asset management strategy and continuous efforts towards portfolio rejuvenation, ultimately enhancing AA REIT’s resilience and delivering sustainable returns for unitholders.
The divestment is expected to be completed by the first half of 2025, subject to JTC Corporation’s approval. After the divestment, AA REIT’s portfolio will consist of 27 properties in Singapore and Australia.