Aims Apac Reit to divest S$15 million industrial property for capital recycling

[SINGAPORE] Aims Apac Real Estate Investment Trust ( AA Reit ) is looking to divest an industrial property in Singapore for S$15 million as part of its capital recycling strategy.

The manager on Wednesday (Mar 4) said that the Reit’s trustee, HSBC Institutional Trust Services (Singapore), has entered a sale and purchase agreement with Sin Hwa Dee Foodstuff Industries, which supplies pre-packed yusheng and sauces.

The property at 8 Senoko South Road is a partly three-storey and six-storey single-user industrial development.

The S$15 million transaction price represents an 11.1 per cent premium to the property’s valuation of S$13.5 million as at Feb 28, the manager said.

The deal is subject to JTC Corporation’s approval, and is expected to be completed within the first half of 2026.

Following the proposed divestment, AA Reit’s portfolio will comprise 27 properties across Singapore and Australia.

Russell Ng, chief executive officer of the Reit’s manager, said the net proceeds from the divestment “may be redeployed towards AA Reit’s growth initiatives, including potential new acquisitions, asset enhancement initiatives and future development opportunities”.

The Reit on Feb 5 posted a 2.5 per cent increase in distribution per unit to S$0.0725 for the nine-month period ended Dec 31.

Its revenue grew 1.4 per cent year on year to S$141.1 million, amid higher rental reversion and lower property expenses, driven by cost efficiencies in the period.

Units of AA Reit ended Wednesday 3.4 per cent or S$0.05 down at S$1.43, before the news.