Singapore-listed industrial REIT AIMS AMP Capital Industrial REIT has received the temporary occupation permit (TOP) for its property at 103 Defu Lane on 28 May.
The property recently underwent an asset enhancement that doubles its gross floor area from 97,367 sqft to 202,9012 sqft, with the increase in built plot ratio from 1.2 to 2.5. AIMS AMP REIT expects the property to be valued at SGD43.1 million up from its former value of SGD12.0 million prior to the redevelopment.
76% of the enlarged gross floor area is pre-leased to confectionery and chocolate distributor Focus Network Agencies (FNA), owner of chocolate boutique chain The Cocoa Trees.
Partial rental income is expected in the third quarter of 2014 after the tenant’s fit-out, with stipulated rent escalation over the term of the FNA lease.
Net rental income for the asset is expected to increase as the remaining space is leased. However AIMS AMP REIT has not indicated if there are tenants already committed to the remaining space.
Units of AIMS AMP REIT closed the trading day flat at SGD1.46 on the Singapore Exchange.