Singapore-based AIMS AMP Capital Industrial REIT (AIMS AMP REIT) has announced a S$25.4 million redevelopment plan for its property at 103 Defu Lane 10.
|AIMS AMP REIT has secured an anchor tenant for the redeveloped site, expected to be valued at S$42.6 million upon completion. Photo : AIMS AMP Capital Industrial REIT|
Upon completion, the asset is expected to be valued at S$42.6 million, up from its current value of S$12.0 million and see the site transform from a two storey warehouse and adjoining three storey building into a high value six storey industrial facility. The gross floor area will more than double from 97,367 square feet to approximately 202,901 square feet. Redevelopment works are expected to be completed in May 2014.
AIMS AMP REIT has also secured an anchor tenant for the redeveloped site. Singapore-based chocolate distributor Focus Network Agencies (Singapore) Pte Ltd has signed a lease for approximately 76 percent of the property for a period of 6 years and 4 months.
AIMS AMP REIT CEO, Mr Nick McGrath, has said that this redevelopment is another excellent example of how AIMS AMP REIT is unlocking value from within their portfolio to deliver greater returns to investors. "By increasing the built plot ratio from 1.2 to 2.5, we will significantly increase the value this asset contributes to our portfolio", he said. “This is a relatively small investment but one that will provide high returns, with the redevelopment profit margin expected to be around 14.0 percent,” added Mr McGrath.
AIMS AMP REIT has stated that the redevelopment works will have minimal impact on the REIT’s revenue as the property
contributed less than 2% of net rental revenue in FY2012.