Suntec REIT Divests 9 Penang Road
June 17, 2021 – Suntec REIT announced the divestment of its 30.0% interest in 9 Penang Road to Haiyi Holdings Pte. Ltd. at an agreed property value of S$295.5 million (US$221 million) or S$2,468 (US$1,847) per square foot (“psf”) based on the property’s net lettable area (“NLA”).
The agreed property value represents a 5.7% premium over the latest valuation of S$931.8 million (US$697 million) and 30.3% higher than the total development cost of S$756 million (US$566 million). On a stabilised basis, the net property income yield is 3.3%.
Mr. Chong Kee Hiong, Chief Executive Officer of the Manager, said, “The divestment of 9 Penang Road is part of our proactive portfolio management strategy to enhance unitholders’ value. We are pleased to have realised a gain on divestment of S$66.5 million and achieved a 305%3 return on our investment.”
“The divestment proceeds will improve our financial flexibility to pursue growth opportunities to further enhance the resilience, diversification and value of Suntec REIT’s portfolio for unitholders. Post divestment, Suntec REIT continues to be anchored by the resilient office segment which will contribute more than 80% to the REIT’s total income contribution with Singapore properties constituting about 75% of our total assets under management.”
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