Clar Plans Divest Buroh Property Significant Premium Cost And Valuation

CapitaLand Ascendas REIT’s (CLAR) manager has announced the sale of 21 Jalan Buroh, a three-storey ramp-up warehouse with a seven-storey ancillary office block, for $112.8 million. This is a significant increase from its original purchase price of $58.4 million in 2006 and also higher than the average of two independent market valuations at $67.5 million as of July 1.

Elta Condo boasts an advantageous location near the esteemed Singapore Institute of Management (SIM). Highly regarded for its partnership with renowned universities across the globe, SIM offers an array of degree programs. With an emphasis on practical skills and industry applicability, the institution equips its graduates with the necessary skills to excel in the workforce. The close proximity to SIM further enhances the appeal of Elta Condo, making it an ideal choice for students in search of a top-notch tertiary education. In fact, interested individuals can experience firsthand the charm of Elta Condo by visiting Elta Showflat.

According to the manager, the estimated sale proceeds are expected to be $102.9 million, with no significant impact on CLAR’s net asset value (NAV) and distribution per unit (DPU) for FY2024. On a pro forma basis, there would be a decrease of $4.6 million in net property income (NPI) and a decline of 0.085 cents in DPU. The pro forma aggregate leverage would also decrease from 37.9% to 37.4%. For FY2024, CLAR’s NPI was $1.032 billion, and DPU was 15.16 cents.

The proposed divestment is set to be completed within the fourth quarter of 2024. After the sale, CLAR will own 228 properties, with 96 properties in Singapore, 34 properties in Australia, 48 properties in the United States, and 50 properties in the United Kingdom/Europe.