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| | | | | | | SINGAPORE: JTC Corporation is planning to sell off 1.7 million square metres of its industrial space to allow for greater private sector competition.
Analysts say the move may well be the start of plans by JTC to divest a substantial portion of its industrial properties.
Some of the properties to be sold may eventually be spun into a real estate investment trust.
When contacted, JTC declined to say how much the properties are worth, but reports have speculated that these assets that may be sold might well be valued at between S$1.5b and S$2b.
JTC is owned by the government and currently dominates the industrial property business in Singapore.
Among the properties being off-loaded will be three business park buildings, a warehouse and some factories.
However, it is holding onto its 800 workshops and two subsidiaries, Jurong International and Ascendas.
JTC will be looking for consultants to assist in the sale.
Some of the properties will be sold through tender.
Others will be bundled into a Real Estate Investment Trust, into which the public can invest.
JTC says this strategy will also ensure prices are stable while it gets a fair market value for the properties.
It is not saying how much money it expects to raise.
The industrial property developer estimates it will take at least 18 months to complete the divestment process due to the large size of the portfolio, and details of the divestment approach for each of the property portfolios will be worked out in the second phase of the divestment exercise.
The divestment is part of its plan to exit from the development of ready-built industrial facilities and leave this to private developers.
JTC will continue to manage the 800 workshops to facilitate long-term estate planning.
It is still studying the future plans and divestment options for Jurong International and Ascendas. - CNA /dt |
