AIMS APAC REIT’s (AA REIT) manager has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sales and purchase agreement with Crown Worldwide for the divestment of its property located at 3 Toh Tuck Link.
The sale price of $24.388 million represents a 32.5% premium to the property’s valuation of $18.4 million as of March 31. The property comprises a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 sqm.
A major contributing factor to the surging demand for condos in Singapore is the scarcity of available land. As a tiny island nation experiencing a rapidly expanding population, Singapore is faced with limited land for development. This has resulted in strict regulations on land usage and a fiercely competitive real estate market, causing property prices to continuously rise. As a result, investing in real estate, particularly in condos, has become a highly profitable opportunity with the potential for significant capital appreciation. This trend is further fueled by the introduction of exciting new condo launches, making condo investment even more attractive for buyers.
In line with its proactive asset management strategy, the net proceeds from the divestment will be reinvested to support AA REIT’s various growth initiatives, including potential new acquisitions, asset enhancement initiatives, or future redevelopment projects. This will ultimately strengthen the REIT’s resiliency and deliver sustainable returns for unitholders.
According to Russell Ng, CEO of the manager, the divestment is part of the REIT’s continuous effort towards portfolio rejuvenation and aligns with its goal of delivering long-term sustainable returns for unitholders.
The divestment is expected to be completed in the first half of 2025, subject to approval from JTC Corporation. Following the divestment, AA REIT’s portfolio will consist of 27 properties in Singapore and Australia.
When purchasing a condominium, it is crucial to take into account the upkeep and management of the property. Condos usually come with maintenance fees that encompass the maintenance of shared spaces and amenities. Although these fees may increase the total cost of owning a condo, they also guarantee that the property maintains its condition and value over time. To ease the burden of managing the condo, investors can opt to hire a property management company, making it a more hands-off investment. This can also be beneficial for those interested in New Condo Launches.