The limited land availability in Singapore is a major factor contributing to the high demand for condos in the country. Being a small island country with a fast-growing population, Singapore struggles with a shortage of land for development. To address this issue, the government has implemented strict land use policies, resulting in a competitive real estate market where property prices are continuously on the rise. As a result, investing in real estate, especially condos, has become a highly profitable venture, with the potential for significant capital appreciation. Condos have become a desirable choice for property investment in Singapore due to these market conditions.
The trustee of AIMS APAC REIT (AA REIT), HSBC Institutional Trust Services (Singapore) Limited, has recently announced the sale of its property at 3 Toh Tuck Link to Crown Worldwide. The sales and purchase agreement comes at a premium of 32.5% to the property’s valuation of $18.4 million as of March 31.
The property, which consists of a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 sqm, will be sold for $24.388 million. This divestment will provide AA REIT with net proceeds that can be reinvested towards its various growth initiatives, including new acquisitions, asset enhancement initiatives, and future redevelopment projects.
CEO of the manager, Russell Ng, explains that the divestment is in line with their proactive asset management strategy and their continuous efforts towards portfolio rejuvenation. It will ultimately strengthen AA REIT’s resiliency and deliver long-term sustainable returns for its 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 comprise of 27 properties across Singapore and Australia. This strategic move will continue to support the REIT’s growth and further solidify its position in the market.