Bookmark & Share
Viva Industrial Trust has acquired two properties at 19 Tai Seng Avenue (pictured) and 11 Ubi Road 1 for S$122.7 million.
The Trust revealed that the acquisition will boost its aggregate GFA portfolio by more than 370,000 sq ft to around 3.29 million sq ft and raise portfolio value by around 14 percent to around S$1.1 billion.
Notably, the Tai Seng property had a purchase price of S$42.00 million (excluding an upfront land premium for the balance of the initial 30-year lease term of S$4.4 million), while the acquisition price for Ubi Property stood at S$80.7 million (excluding an upfront land premium for the balance of the initial 30-year lease term of S$5.4 million).
Classified as light industrial building, the Tai Seng property is a seven-storey building with a GFA of around 120,556 sq ft.
With a GFA of about 253,058 sq ft, the Ubi Property, on the other hand, comprises a seven-storey block and a two-storey block that is connected by an open courtyard passageway with a basement carpark.
The two properties will be leased back to their vendors – Home-Fix D.I.Y. and Meiban Investment – for a term of 10 years.
“We are pleased to complete the acquisition of these two strategically-located properties, which are in line with our growth strategy of building a resilient portfolio with quality assets that deliver stable yield,” said Wilson Ang, CEO of the REIT Manager.
“The two properties not only diversify the asset and tenant base of VIT’s portfolio and reduce the concentration of our top 10 tenants but also increase our weighted average portfolio occupancy from 80.8 percent to 84.0 percent. Furthermore, the weighted average lease expiry (by rental income) is expected to increase from 3.1 years to 4.0 years, providing good cash flow visibility.”
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
Related Articles:
Ascendas in JV with China state-owned firm
Storage wars heating up in Tampines
Transaction activities for industrial property still muted in Q3