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Singapore-based Viva Industrial Trust (VIT) has acquired a high specification, ramp-up logistics property at 6 Chin Bee Avenue (pictured) for $87.3 million, which excludes stamp duty and an upfront land premium of $5.57 million paid to JTC Corp.
“We are pleased to have successfully completed the acquisition of 6 Chin Bee Avenue,” said Wilson Ang, CEO of Viva Industrial Trust Management, VIT’s manager.
“We see the immense potential of Singapore’s growing food services sector and this asset serves as a cornerstone of VIT’s strategy to tap on the increasing demand for centralised food storage facilities.”
With a gross floor area (GFA) of 324,166 sq ft and a remaining land tenure of around 27 years, the property comprises five levels of logistics and warehouse facilities, including two storeys of an integrated cold room and one level of ambient temperature foods storage facility. There is also a mezzanine on each warehouse level accommodating offices, kitchen, storage and ancillary showroom.
Situated at Jurong Industrial Estate, it is currently leased to Sharikat Logistics, an ISO certified warehouse space solution provider under a seven-year triple-net master lease for $7.44 million per annum, which translates to a net property income (NPI) yield of eight percent. There will also be rental escalations of 1.5 percent per annum at the start of the third year and for every subsequent year of the lease term, while the tenant has an option to renew for an additional term of three years.
With the acquisition, the overall value of VIT’s existing property portfolio will increase by 7.9 percent to $1.28 billion, while its weighted average occupancy rate will rise from 88.6 percent to 89.8 percent. Furthermore, its weighted average lease expiry by net rental income will rise from 3.3 years to 3.6 years.
Image source: Viva Industrial Trust
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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