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Cambridge Industrial Trust (CIT) announced Monday (8 December) its plans to acquire a three-storey purpose-built building within the International Business Park in Jurong East from M+W Singapore for S$28 million.
Known as 16 International Business Park, the property has a gross floor area of about 69,258 sq ft and a remaining land tenure of around 41.6 years.
Upon completion of the deal, the building will be leased back to M+W Singapore for a period 11.6 years, with the option to renew the rental agreement for two straight five-year terms.
The purchase will be partially funded by proceeds from the medium term notes (MTN) issued earlier this month. The transaction is scheduled to be completed by end-December 2014 and is anticipated to have a positive effect on its distributable income.
“CIT has been actively identifying opportunities in the Singapore Business Park sector for some time. We are pleased to have acquired this highly sought-after quality asset,” said Philip Levinson, Chief Executive Officer of Cambridge Industrial Trust Management Limited (CITM).
“As our first business park asset, this acquisition marks another milestone for CIT. The property will yield positive returns and improve our overall portfolio quality. The long WALE of this property further supports and meets our objective of delivering secure and stable long term distributions to unitholders,” he added.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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