CapitaLand has parted ways with the group of companies responsible for managing the self-storage arm of its business StorHub.
It has been reported that the deal is worth S$179.5 million though the company and is tight-lipped about the buyer as of now.
As a part of the deal the buyer would also acquire the outstanding shareholder loans of S$167.5 million.
The buyer it has been learnt has agreed to pay the loan owed by StorHub Group Pte Ltd in instalments.
However, CapitaLand shall continue to own the StorHub Group after this divestment. Under the agreement the S$12 million equity component of the shares in the group of companies shall be adjusted upon completion of the deal.
CapitaLand has announced that under this transaction StorHub’s assets were valued at S$185 million.
The portfolio includes total of 12 self-storage properties: 11 storage facilities in Singapore apart from a storage facility in Shanghai. Together these properties have 800,000 sq ft of net lettable area.
CapitaLand Group’s President and CEO, Singapore and International operations Jason Leow said in a statement that this decision to divest StorHub was a part of the group’s approach at recycling capital.
He added that the group has a good mix of portfolios where it has the ability to prioritise capital allocation towards its core business and market.
The Group had divested assets worth more than S$4 billion last year and at the same time also invested more than S$6.11 billion into newer assets.
Mr Leow concluded by saying that as a part of its capital recycling they have set an annual target of S$3 billion worth of divestment and redeploying the same into newer assets.