Ascendas turns an unsolicited enquiry into a whopping $32m sale

But the sale of the 2-storey warehouse at 6 Pioneer Walk will drag A-REIT's proforma net income by S$1.78m for FY11/12.

In a release, Ascendas Real Estate Investment Trust announced the sale of 6 Pioneer Walk to Chasen Logistics Services Limited, a wholly owned subsidiary of Chasen Holdings Limited, for S$32.0 million.

The sale price of S$32.0 million represent a 42.2% premium over the original purchase price of S$22.5 million in 2007. The property has a remaining land tenure of about 24 years and the divestment is in-line with the Manager’s proactive asset management strategy where it seeks to regularly review and rejuvenate its portfolio.

With the sale, A-REIT’s proforma net property income would reduce by S$1.78 million for FY11/12 (assuming the sale was completed on 1 April 2011). The sale originated from an unsolicited enquiry from the buyer and is subjected to JTC’s approval.

The Property is located at 6 Pioneer Walk within the Jurong Industrial Estate. It is a 2-storey warehouse with a ramp-up driveway and a 4-storey ancillary office as well as a single storey workshop and a container yard with a gross floor area of 20,094 sqm.

The existing lease which will expire in December 2017 will be assigned to Chasen upon completion of the sale.

The transaction is expected to be completed by end June 2012, following which AREIT will own 100 properties in Singapore and 1 in China.