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Viva Industrial Trust (VIT) announced Thursday (27 October) that it has entered into an agreement with Sharikat National to acquire a newly completed logistics development at 6 Chin Bee Avenue for S$87.3 million.
Aside from the purchase consideration, VIT will also pay an upfront land premium for the balance of the 30-year JTC lease term estimated at S$5.7 million.
The property has an independent valuation of S$94.3 million. It has five levels of high specifications logistics/warehouse facilities and occupies a gross floor area of 324,166 sq ft, and it has obtained Temporary Occupation Permit on 12 April.
“With this latest acquisition, VIT is now able to tap into the immense potential of the food services industry and is well positioned to meet the increased demand for centralised food management facilities,” said its manager.
Upon completion of the acquisition, the facility will be leased to Sharikat Logistics for a seven-year triple-net master lease contributing annual revenue of S$7.44 million to VIT, with an option to renew for a further term of three years.
There will also be a 1.5 percent rental escalation per annum at the start of the third year and for every subsequent year of the lease term.
The proposed acquisition will also be be partly funded by way of the issuance of S$23.0 million worth of stapled securities in VIT.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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