Sabana REIT's Tuas Avenue property deal called off

Its buyer, Kim Soon Lee (Lim) Heavy Transport, will be given a refund of $1.12m.

Sabana Real Estate Investment Management has received a notice of rescission to rescind the sale purachase agreement (SPA) from the purchaser of its Tuas Avenue site, Kim Soon Lee (Lim) Heavy Transport.

Following receipt of the notice, HSBC Institutional Trust Services (Singapore) Limited, as a trustee of Sabana REIT, shall refund to the purchaser the aggregate cash deposit of $1.12m, equivalent to 10.0% of the sale consideration with GST.

Last 25 March, Sabana REIT announced that Kim Soon Lee (Lim) Heavy Transport, has not yet received approvals from JTC.

This is further to the announcement dated 28 September 2018 when Sabana REIT entered into a conditional sale and purchase agreement for the proposed divestment of 1 Tuas Avenue 4 with Kim Soon Lee (Lim) Heavy Transport Pte. Ltd. for the sum of $11.18m.

The sale consideration is 52% below the property’s current book value of $23.3m as at 30 June 2018. The divestment was expected to be completed by the fourth quarter of the financial year ended 31 December 2018.