Trust holds an 85 per cent interest in the property; the remainder is held by listed fund manager MA Financial
PARAGON Reit Management, the manager of Paragon Real Estate Investment Trust (Reit), has entered into an agreement to sell its stake in an Australian shopping centre for A$192 million (S$168 million).
The put and call option deed was entered into by its 85 per cent owned trust, Figtree Trust, said the manager in a bourse filing on Friday (Nov 22) evening. The buyer was not named in the announcement, but is said to be an “unrelated party”.
The property, Figtree Grove, is a shopping centre in Wollongong, a coastal city in Australia. Paragon Reit holds an 85 per cent interest in the property, with the remainder held by listed fund manager MA Financial.
The divestment consideration reflects a 5 per cent, or A$9 million, premium over the independent valuation of the property of A$183 million as at Oct 31, 2024.
Net proceeds from the sale will provide the manager with “greater financial flexibility to repay debt; finance any capital expenditure, asset enhancement works and/or acquisitions; distribute to unitholders; and/or finance general corporate and working capital requirements”, said the manager.
The sale is expected to be completed in the first quarter of 2025. Once completed, Paragon Reit’s portfolio will comprise three prime retail properties across Singapore and Australia.
Paragon Reit has been selling down assets. In August, it completed the sale of The Rail Mall along Upper Bukit Timah Road for a cash consideration of S$78.5 million.
Units of Paragon Reit closed S$0.005 or 0.6 per cent lower at S$0.865 on Friday before the announcement.
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