According to the REIT manager, the net proceeds from the divestment will be used to pay off outstanding debt obligations associated with the mall. The remainder of the proceeds will be distributed entirely to the REIT’s unitholders via a special distribution of 1.85 cents per unit.
Paragon REIT has completed the divestment of The Rail Mall on Aug 15. The REIT manager announced, on June 20, that it signed a sale and purchase agreement (SPA) to divest the mall for $78.5 million.
The Rail Mall is a strip mall with 43 shop units. Located adjacent to the Rail Corridor nature trail, the mall has a total net lettable area (NLA) of 49,886 sq ft.
