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A chemical logistics facility at 121 Banyan Drive in Jurong Island has been sold for $227.5 million in a proposed sale-and-leasebuyback agreement, revealed CBRE.
Nestled on two adjoining plots of land measuring 464,385 sq ft, the property comprises a six-storey ramp-up warehouse with two blocks of single-storey warehouse, ancillary offices and an open yard. It has a total gross floor area of about 707,881 sq ft.
Under the agreement, the property will be sold to a private real estate fund and leased back on a 10-year term to Vibrant Group subsidiary LTH Logistics. The deal, which was signed by way of a put and call option agreement, is conditional on final JTC approval.
In an SGX filing, Vibrant Group said the proposed sale and leaseback arrangement enables the group to realise the fair value of its investments in the property, while enabling it to enjoy long term use for its existing operations.
“We are delighted to have represented Vibrant Group’s subsidiary, LTH Logistics, in this proposed sale-and-leaseback arrangement, which we understand is the first asset to be securitized on Jurong Island,” said Rimon Ambarchi, CBRE’s executive director of industrial and logistics services.
“Jurong Island’s stellar success as, arguably, the world’s leading energy and chemical location is testament to the abilities of both EDB and JTC to continually attract top global petrochemical firms. LTH Logistics’ state-of-the-art chemical logistics facility at 121 Banyan Drive and their vast experience in handling a wide variety of both hazardous and non-hazardous chemicals will continue to play a critical role in the Jurong Island eco-system,” he added.
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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