The divestment is expected to be completed in 1Q2025. Upon completion, Paragon REIT will have three retail properties, Paragon, Clementi Mall and Westfield Marion. Singapore would account for 83% of net property income (NPI) and 87% of AUM.
UOB Kay Hian (UOBKH) introduces the idea that Paragon REIT (former SPH REIT) has been divesting assets, and this could be a precursor to an M&A.
On Nov 22, Paragon REIT entered into a put and call option to divest Figtree (SGX:5F4
) Grove Shopping Centre at Wollongong, Australia for A$192 million (5% premium above valuation). Pro forma 2023 DPU is expected to drop 1.8% to 4.80 cents post-divestment. Pro forma NAV per unit as of end-Dec 2023 is expected to fall 2.2% to $0.90.
