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Property consultancy CBRE revealed on Friday (4 Jan) that it facilitated the sale-and-leaseback of a 25ha site at Tuas South Avenue 14 for $585 million – the biggest single-asset industrial deal here for 2018.
The buyer is LOGOS, and the facility was sold by and fully leased to REC for a term of 20 years.
The site contains an integrated industrial and warehouse facility with an overall gross floor area (GFA) of 1.6 million sq ft, where REC will continue to convert polysilicon into solar cells, wafers and solar panels.
Aside from that, the property is adjacent to the highly-anticipated Tuas Mega Port, where all of Singapore’s future container activities will be consolidated. Upon completion by 2040, the port is expected to handle a maximum of 65 million standard-sized containers versus the current capacity of 40 million.
“We are delighted to start the new year strongly with the announcement of Singapore’s largest single-asset industrial transaction last year. Sold at $585 million to LOGOS via a sale-and-leaseback agreement, leading solar firm REC will continue to produce solar panels at this highly advanced facility in Tuas,” said Rimon Ambarchi, executive director of industrial and logistics services at CBRE.
“We have been experiencing strong demand from a wide variety of institutional investors for high quality industrial real estate in Singapore. These investors are attracted by the relatively strong yields that are still available in this strong core market.”
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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