SuntecREIT: Co has appointed Colliers Intl to mkt Chijmes through an expression-of-interest exercise and is expected to sell the property only if it gets a good price. Property was last valued for $134.0m at the end of last year. It has 79.8k sqft of NLA, and generated rev of $2.6m and NPI of $1.8m for most recent 2Q results. Co acquired Chijmes for $128.0m in 2005. Chijmes has a current remaining lease of 79 yrs.
At last reported NPI and value, Chijmes has approx yield of 5.4% lower than Suntec’s indicative yield of 7.5%. Divestment may be positive for Suntec if it is able to use proceeds to either acquire a higher yielding asset or buy back existing units.
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