UNITHOLDERS of real estate investment trust (Reit) Paragon Reit will receive S$0.0185 per unit from a special distribution, following the completion of The Rail Mall divestment on Thursday (Aug 15).
This is in addition to the Reit’s distribution per unit (DPU) of S$0.0232 for the first half ended Jun 30.
The special DPU’s record date is Aug 28, and it is expected to be paid on Oct 7. It brings Paragon Reit’s year-to-date DPU to S$0.0417, the manager said in a bourse filing.
The divestment of The Rail Mall was first announced on Jun 20, when the Reit entered into a sale-and-purchase agreement with an unnamed buyer for a cash consideration of S$78.5 million.
Net proceeds will be used to pare down outstanding debt obligations associated with The Rail Mall, with the remainder distributed to unitholders.
The price was reached on a willing-buyer, willing-seller basis, taking into account the projected net property income of the property, the retail market outlook and the property yield.
As at Dec 31 last year, the valuation of The Rail Mall was S$62 million.
Units of Paragon Reit climbed 0.6 per cent or S$0.005 to end at S$0.87 on Thursday, before the announcement.
