Proposed Divestment of Three Industrial Properties in Singapore
16 May 2025
Portfolio Divestment of Three Industrial Properties in Singapore
Aggregate Divestment Consideration of S$535.3 million; 2.6% premium over the independent
valuations of the properties at S$521.5 million
The Strategy, Business Park Building
The Synergy, Business Park Building
Woodlands Central, Hi-Tech Buildings
Address | 2 International Business Park | 1 International Business Park | 33 & 35 Marsiling Industrial Estate Road 3 |
GFA | 725,171 sq ft | 445,231 sq ft | 601,674 sq ft |
Divestment Consideration | S$280.0 million | S$120.1 million | S$135.2 million |
Valuation (as at 31 Mar 2025)1 | S$274.7 million | S$120.1 million | S$126.7 million |
Gross Revenue for FY24/25 | S$23.3 million | S$9.0 million | S$12.3 million |
Average Occupancy for FY24/25 | 82.1% | 71.6% | 95.5% |
Title | 60 years commencing on 1 Jul 2008 | ||
Expected Completion Date | By 3Q2025 | ||
1 The independent valuations of the Properties were conducted by Savills Valuation and Professional Services (S) Pte Ltd using the income capitalisation
approach and the discounted cash flow approach while using the direct comparison method as a check against its valuations. 3
Rationale for the Portfolio Divestment
Aligns with MIT's proactive portfolio rejuvenation strategy while maintaining financial agility to seize new value-creating investment opportunities1
Strengthen Capital Structure and
Enhance Financial Flexibility for Future Investments
2
Realise Value of Capital Appreciation
4
1
Strengthen Capital Structure and Enhance Financial Flexibility for Future Investments
Utilise net proceeds of S$516.0 million1 to repay debt in the interim before eventual redeployment towards future investmentsLowers Pro Forma Aggregate Leverage Ratio and
Creates Debt Headroom
Increases Pro Forma ICR for trailing 12 months4
Pro Forma Aggregate Leverage Ratio (%)(as at 31 Mar 2025)
40.1
Pro Forma ICR for trailing 12 months4 (times)(as at 31 Mar 2025)
5.13, 5
37.0 2,3
4.3
Pre-divestment Post-divestment
Pre-divestment Post-divestment
1 After taking into account the total estimated transaction costs of approximately S$11.5 million and net of tenants' security deposits.
2 Assumes that the Proposed Divestment was completed on 31 Mar 2025 and includes effects from the completion of the final phase of fitting-out works for the data centre asset in Osaka, Japan as announced on 2 May 2025.
3 Assumes that approximately S$516.0 million of net proceeds (net of tenants' security deposits) was used to repay debt.
4 Calculated in accordance with Monetary Authority of Singapore's revised Code on Collective Investment Schemes dated 28 Nov 2024. ICR: trailing 12 months earnings before interest, tax, depreciation, and amortisation divided by the trailing 12 months interest expenses, borrowing-related fees and distributions on perpetual securities.
5 Assumes that the Proposed Divestment was completed on 1 Apr 2024. 5
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