reporter2
26-08-13, 12:51
http://www.businesstimes.com.sg/archive/saturday/premium/companies/others/sabana-reit-buying-chai-chee-property-20130824
Published August 24, 2013
Sabana Reit buying Chai Chee property
Light industrial building comes with $68.2m tag, including land premium
By Vivien Shiao [email protected]
SABANA Reit plans to buy an industrial property in Chai Chee from Advanced Micro Devices for $59.5 million.
The property, located at 508 Chai Chee Lane off Bedok North Road and Bedok North Avenue 1, is a seven-storey light industrial building with two basement storeys.
Completed on Dec 2, 2002, with a built-up gross floor area of about 327,574.70 square feet, the property is a JTC Corp leasehold estate of 30+29 years' tenure commencing from April 16, 2001.
The land area of the site is around 113,689.50 square feet, with a remaining tenure of about 46.5 years.
The total acquisition cost is $68.2 million, comprising the $59.5 million purchase consideration for the property, $7.7 million upfront land premium payable to JTC for the balance of the first term (approximately 17.5 years), and other fees and expenses.
The property, which is fully occupied by the vendor, was independently valued at $67.75 million by CKS Property Consultants on July 25.
"Sabana Reit is also responsible for the land rent or upfront land premium (as the case may be) for the second term of land tenure of 29 years," said the trust.
If the acquisition follows through, both parties will enter into a lease agreement in which Advanced Micro Devices will lease back at least 50 per cent of the total rentable area of the property.
It will be for a term of 10 years with two options to extend the lease terms further for four years or 31/2 years each. The remaining space will be leased to third-party tenants.
The transaction is in line with Sabana's aim to invest in income-producing real estate and real estate-related assets used for industrial purposes in Asia, to generate stable and growing returns for unit-holders.
"Sabana Reit would also benefit from an enlarged portfolio that could potentially lead to better access to both the debt and capital markets to support future acquisition growth," it said.
Sabana said that it has sufficient financial flexibility and capacity to fund the acquisition, which is expected to take place in the third quarter. The purchase is subject to approvals of the relevant authorities.
Sabana Reit listed on Singapore Exchange in November 2010 and was established to invest in real estate used for industrial purposes, as well as real estate-related assets, in line with Syariah investment principles. As at June 30, the total assets amount to approximately $1.2 billion.
Sabana Reit units closed trading yesterday unchanged at $1.135.
Published August 24, 2013
Sabana Reit buying Chai Chee property
Light industrial building comes with $68.2m tag, including land premium
By Vivien Shiao [email protected]
SABANA Reit plans to buy an industrial property in Chai Chee from Advanced Micro Devices for $59.5 million.
The property, located at 508 Chai Chee Lane off Bedok North Road and Bedok North Avenue 1, is a seven-storey light industrial building with two basement storeys.
Completed on Dec 2, 2002, with a built-up gross floor area of about 327,574.70 square feet, the property is a JTC Corp leasehold estate of 30+29 years' tenure commencing from April 16, 2001.
The land area of the site is around 113,689.50 square feet, with a remaining tenure of about 46.5 years.
The total acquisition cost is $68.2 million, comprising the $59.5 million purchase consideration for the property, $7.7 million upfront land premium payable to JTC for the balance of the first term (approximately 17.5 years), and other fees and expenses.
The property, which is fully occupied by the vendor, was independently valued at $67.75 million by CKS Property Consultants on July 25.
"Sabana Reit is also responsible for the land rent or upfront land premium (as the case may be) for the second term of land tenure of 29 years," said the trust.
If the acquisition follows through, both parties will enter into a lease agreement in which Advanced Micro Devices will lease back at least 50 per cent of the total rentable area of the property.
It will be for a term of 10 years with two options to extend the lease terms further for four years or 31/2 years each. The remaining space will be leased to third-party tenants.
The transaction is in line with Sabana's aim to invest in income-producing real estate and real estate-related assets used for industrial purposes in Asia, to generate stable and growing returns for unit-holders.
"Sabana Reit would also benefit from an enlarged portfolio that could potentially lead to better access to both the debt and capital markets to support future acquisition growth," it said.
Sabana said that it has sufficient financial flexibility and capacity to fund the acquisition, which is expected to take place in the third quarter. The purchase is subject to approvals of the relevant authorities.
Sabana Reit listed on Singapore Exchange in November 2010 and was established to invest in real estate used for industrial purposes, as well as real estate-related assets, in line with Syariah investment principles. As at June 30, the total assets amount to approximately $1.2 billion.
Sabana Reit units closed trading yesterday unchanged at $1.135.