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CLAR plans to divest Buroh property at significant premium to cost and valuation

The Edge Singapore
The Edge Singapore  • 1 min read
CLAR plans to divest Buroh property at significant premium to cost and valuation
CLAR is divesting 21 Jalan Buroh at a significant premium to valuation; impact on FY2025 NAV and DPU likely modest
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CapitaLand Ascendas REIT’s (CLAR) manager has agreed to divest 21 Jalan Buroh in Singapore for $112.8 million. 21 Jalan Buroh is a three-storey ramp-up warehouse with a seven-storey ancillary office block. 

 The proposed sale price is at a significant premium to the original purchase price of $58.4 million when CLAR acquired the property in 2006, and at a premium to the average of two independent market valuations $67.5 million as at July 1. The estimated sale proceeds are likely to be $102.9 million.

The divestment of the property is not expected to impact CLAR’s NAV and DPU for FY2024.

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