First Reit to divest The Lentor Residence nursing home for S$14.2 million
The sale consideration is lower than the fair value of S$14.3 million
First Reit, a real estate investment trust, has decided to sell its nursing home, The Lentor Residence, for S$14.2 million. The property, located at 51 Lentor Avenue, is a five-storey facility offering 24-hour nursing care and physiotherapy services. According to a bourse filing by First Reit's manager, the sale price is slightly below the fair value of S$14.3 million as of December 31, 2025.
The manager stated that the divestment aligns with the company's efforts to optimize its portfolio. It is anticipated that the sale will bolster First Reit's cash position and financial flexibility, generating net proceeds of roughly S$13.94 million. If the transaction had been finalized on January 1, 2025, the company's pro forma net property income for the fiscal year 2025 would have been S$1.6 million lower, and its distribution per unit would have decreased by S$0.08.
The sale is projected to be finalized by June 2027. Victor Tan, the manager's executive director and CEO, expressed that the sale allows for realizing value from a mature asset and supports the ongoing strategic review. Upon the announcement, First Reit's units experienced a 0.6% decline, closing at S$0.174.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
