Singapore-listed AIMS AMP Capital Industrial REIT (AIMS AMP REIT) (SGX:O5RU) has announced the commencement of improvement works to its property at 20 Gul Way.

The developments is expected to return to achieve 8.31 per cent net property income yield.

The development will add 496,949 square feet of gross floor area (GFA) to the property, bringing the total GFA to approximately 1,656,485 square feet. Construction will commence immediately and is expected to take approximately 17 months. Year 1 rental income for Phase 2E and Phase Three is projected to be S$6.3 million, taking into account the unrecoverable land rent.

AIMS AMP Capital Industrial REIT Management Limited’s Chief Executive Officer, Nick McGrath said: “This phase of 20 Gul Way’s development is expected to achieve a net property income yield on cost of 8.31 per cent, delivering superior returns to our investors.”

The announcement came on the back of a change in CEO for the Manager of the REIT. Mr McGrath will be replaced by Mr Koh Wee Lih as Chief Executive Officer (CEO), effective 1 January 2014.

The total development cost is estimated at S$77.2 million which will be funded from existing debt facilities following the S$110.0 million raised in the private placement in April 2013.

Units of AIMS AMP Capital Industrial REIT have closed flat from the previous trading day at S$1.45 on the Singapore Exchange.