Paragon REIT is announcing the divestment of The Rail Mall for a S$78.5 million consideration:

Proceeds from the divestment will be used to pare down outstanding debt obligations, finance potential acquisitions and asset-enhancement initiatives, and/or make distributions to unit holders, said the manager.

The Rail Mall, located in Upper Bukit Timah Road, has nearly 50,000 sq ft of net lettable area, and sits on a site sold by the state with a 99-year leasehold tenure from March 1947.

This leaves a balance of 21 years and eight months. The property was valued at $62 million as at Dec 31, 2023.