STARHILL Global Real Estate Investment Trust : P40U 0% (SGReit) is divesting the strata office lots that it owns at Wisma Atria for a cash consideration of about S$16.1 million or S$2,100 per square foot (sq ft), the Reit’s manager said on Monday (Oct 28).

The sale is to an unrelated third party, with the divestment amount at a 22.2 per cent premium to the latest valuation of the property, added the manager.

The offices are located on Level 12 of the office tower in Wisma Atria, and have a net lettable area of around 7,653 sq ft.

SGReit’s manager said that the sale consideration was arrived at on a “willing buyer and willing seller basis”, after taking into account the current economic environment and the property’s valuation as at Jun 30, 2024.

It added that the divestment is in line with its strategy to rejuvenate SGReit’s portfolio through selective divestments.

Net proceeds may be used to pare down debt, for working capital purposes, for future acquisitions, and/or make distributions to unitholders, it noted.

“The pro forma financial effects of the divestment on the distribution per unit and net asset value per unit of SGReit is not expected to have a material impact,” said the Reit’s manager.

Units of SGReit closed at S$0.505, down 1 per cent or S$0.005 on Monday, before the announcement.