Singapore-listed Industrial REIT Cambridge Industrial Trust (CIT) (SGX:J91U) has arranged for a S$50 million revolving credit facility from existing lenders to fund the development of a new four storey ramp up warehouse facility at 3 Pioneer Sector 3, Singapore.
|Cambridge Industrial Trust currently has 51 industrial properties located across Singapore|
The property is estimated to have a gross floor area of approximately 315,411 square feet and will manifest as part of its existing property at the same address. The development has been carried out as part of CIT’s asset enhancement strategy to unlock the full value of its current properties.
The development is expected to have a positive impact on CIT's distribution to unit holders. Pro forma DPU impact is projected to be approximately +0.2041 cents per annum.
Assuming that CIT draws S$45.4 million on the revolving credit facility to fund the development, its aggregate leverage will increase from 35.3 percent to 37.5 percent.
The Ramp-Up Warehouse is expected to be completed by December 2014. Units of CIT are currently trading slightly higher by half a percentage point from its previous close of S$0.84.