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AIMS AMP Capital Industrial REIT (AA REIT) announced on Thursday (17 May) that it expects to complete the $48.2 million redevelopment of its property at 3 Tuas Avenue 2 in the second half of 2019.
It revealed that the design-and-build project will transform the site “from a purpose-built production and warehouse facility into a modern and versatile ramp-up industrial facility suitable for both production and storage”.
It will also increase “the ease of sub-dividing the property for multi-tenancy usage, enhancing the property’s flexibility for customisation and leasing”.
The property’s gross floor area is also set to grow by 52 percent to some 24,890 sq m, while the plot ratio is expected to increase from 0.92 to the maximum of 1.40.
Upon completion of the new development, the value of the property will stand at about $51 million, it said.
AA REIT believes the redevelopment will have minimal impact on its revenue as the property contributes less than one percent of the trust’s gross rental income.
The trust also expects its pro-forma leverage to remain healthy at 35 percent based on its position as at 31 March.
“Amidst a softer industrial market, we continue to execute on our asset enhancement initiative strategy to build a high quality and resilient portfolio that can meet evolving market needs and attract quality tenants,” said Koh Wee Lih, CEO of AA REIT’s manager.
“The redevelopment of 3 Tuas Avenue 2 is just another excellent example of how we are delivering on strategy to create new value for our unitholders.”
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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