Singapore-listed Retail REIT Starhill Global REIT (SGX:P40U) has secured a renewal rent commitment for a period of 12 years from anchor tenant Toshin Development Singapore. The renewal rent of twelve years is for its Ngee Ann City property located along Orchard Road in which Toshin currently occupies all retail areas, except level five, as master tenant.
|Starhill Global REIT's Ngee Ann City sits along Orchard Road, Singapore's premier shopping district.|
The new base rent is about 6.7 percent higher than the prevailing rate and the lease agreement provides for a review of the rental rate every three years during these twelve years. Starhill Global REIT’s stake in Ngee Ann City comprises four strata lots representing 27.23 percent of the total share value of strata lots.
Toshin Development Singapore is a subsidiary of the internationally renowned Takashimaya Company Limited of Japan. For March 2013, the Toshin Lease contributed to 20 percent of Starhill Global REIT’s portfolio gross rent.
Units of Starhill Global REIT are hovering about a percentage point down from its previous close at S$0.875 on the Singapore Exchange.