Paragon REIT to divest The Rail Mall for $78.5m

Proceeds from the sale will be used for debt reduction, potential acquisitions, and property improvements. 

Paragon REIT Management Pte. Ltd. (Paragon RM), the manager of Paragon REIT, has announced the divestment of The Rail Mall for a cash consideration of $78.5m. 

The divestment was finalised through a sale and purchase agreement. It was negotiated on a willing buyer willing seller basis, factoring in various key elements such as the projected net property income, the current retail market conditions, and the property yield outlook.

Proceeds from the sale will primarily go towards debt reduction, potential acquisitions, and property improvements. 

Despite this, Paragon REIT anticipates minimal impact on its financial metrics for the year ending 31 December.

The divestment is set for completion in the second half of fiscal year 2024.