SINGAPORE - Mapletree Industrial Trust (MIT) will divest a cluster of two factories located at Tanglin Halt for $50.6 million to an unrelated third party, its manager said on Feb 7.

The selling price is 3.9 per cent above the properties’ independent valuation of $48.7 million as at Dec 31. It also implies an 8.4 per cent premium above the book value of $46.7 million as at the end of the financial year ended March 31, 2023.

The cluster, located at 115A and 115B Commonwealth Drive, comprises a five-storey flatted factory and a two-storey flatted factory with an amenity centre. It has a gross floor area of 254,443 square feet.

The properties sit on a site spanning 99,765 sq ft with a 56-year land lease commencing from July 1, 2008. They contributed to 0.7 per cent of MIT’s gross revenue for the financial year ended March 31, 2023.

The real estate investment trust will use sale proceeds to fund committed investments, pare down existing debt or make distributions to unit holders, the manager said. It expects to complete the transaction in the first half of 2024.

Mr Tham Kuo Wei, chief executive of the manager, said the sale will provide MIT with greater financial flexibility to pursue other growth initiatives.

“We will continue to explore opportunities to rebalance the portfolio through divestments of non-core assets.”

MIT’s units closed one cent lower at $2.41 on Feb 7. THE BUSINESS TIMES