Allco (Singapore) Limited (“Manager” or “Allco Singapore”), the manager of Allco Commercial Real Estate Investment Trust (“Allco REIT”) (SGX: ALLC) wishes to announce the following.

Background

As previously announced on 1 February 2008, Allco REIT’s strategic focus in 2008 is as follows:
1) Execution on asset plans to drive asset values and organic growth; and
2) Strategic portfolio management with a view to redeploying capital to higher growth assets.

The Manager is in the process of undertaking a review of the entire asset portfolio of Allco REIT with the objective of enhancing value for Unitholders. The Manager’s view is that the current Allco REIT unit price is not reflective of the underlying value of Allco REIT’s portfolio. Accordingly, the review is being undertaken in the context of the strong underlying property fundamentals within the Allco REIT portfolio. Allco REIT is trading at a substantial discount to its reported net asset value and the strategic review is designed to explore the means by which this gap may potentially be closed. Allco REIT’s net asset value has increased from S$0.93 per Unit as at the listing date of 30 March 2006 to S$1.451 per Unit as at 31 December 2007.

Australian assets

In the ordinary course of managing the business of Allco REIT, the Manager continually evaluates its purchase, hold and divestment options in respect of its assets with a view to maximising unitholder value. To this end and as reported in the Australian media on 7 March 2008, the Manager is currently investigating the potential divestment of Allco REIT’s interests in its Australian properties. Allco REIT has not entered into any binding arrangements with respect to the sale of any of these properties.

For more detail, click here