HDB initiates public auction for Altura EC project at Bukit Batok West Avenue 8, offering 375 residential units near an MRT station and Altura EC Bukit Batok schools for families.

CLAR has announced the divestment of Singapore industrial building KA Place at a consideration of $35.38 million. The figure is a 219% premium to CLAR’s purchase price of $11.1 million in March 2005 and a 55% premium to the property’s market valuation of $22.8 million as at Dec 31, 2022.The sale and purchase agreement was entered into and the REIT’s trustee, HSBC Institutional Trust Services (Singapore). KA Place SPV 1 is the buyer.The high-specification industrial building has a total gross floor area of 10,163 sq m and a remaining land lease tenure of about 35 years, as well as a car park on the second storey.The divestment is in line with the manager’s proactive asset management strategy and is expected to improve the quality of CLAR’s portfolio, optimise returns for unitholders, and facilitate capital redeployment.Assuming the divestment was completed on Jan 1, 2022, the pro-forma impact on CLAR’s net property income and distribution per unit would have been a decrease of $0.92 million and 0.005 Singapore cents, respectively.The net proceeds after divestment costs are expected to be $30.65 million. CLAR’s manager has decided that the net proceeds can be recycled to fund committed investments, repay existing indebtedness, extend loans to subsidiaries, fund general corporate and working capital needs and/or make distributions to unitholders.If the net proceeds were used to repay CLAR’s borrowings as at Dec 31, 2022, the REIT’s aggregate leverage will be reduced from 36.3% to approximately 36.2%.CLAR’s manager is entitled to a divestment fee of 0.5% of the sale consideration of the property, which would be paid in cash.Units in CapitaLand Ascendas REIT closed 3 cents higher, or 1.05% up, at $2.88 on April 20. Upon completion of the proposed divestment, CLAR will own 229 properties across Singapore, Australia, the United States, the United Kingdom and Europe.CapitaLand Ascendas REIT’s proposed divestment of KA Place will have a positive impact for the REIT and its unitholders. It will improve the quality of its portfolio, optimise returns and enable further capital redeployment. The divestment is also expected to reduce the REIT’s aggregate leverage. The net proceeds from the divestment may be used to fund committed investments, repay existing debt, extend loans or for general corporate or working capital needs.