Singapore-listed industrial REIT Soilbuild Business Space REIT (SGX:SV3U) announced on 26 May that it has completed the acquisition of an industrial building at 39 Senoko Way, Singapore.
The plan to acquire the property from steel works contractor Tellus Marine Engineering for SGD18 million (USD14.3 million) was first revealed in March this year. Upon acquisition Tellus Marine Engineering will continue to lease the property for a period of ten years.
The 4-storey industrial building is sited on a land area of 6,413.10 square meters and is held under a lease issued by JTC Corporation for a term of 30 years commencing from February 1994 with a covenant by JTC to grant a further term of 30 years.
To fund the acquisition, management of Soilbuild REIT has entered into a SGD100 million facility agreement on 20 May 2014 with lead lenders DBS Bank, Oversea-Chinese Banking Corporation Limited, United Overseas Bank Limited and The Hongkong and Shanghai Banking Corporation Limited. The facility will be secured by a mortgage over its property, West Park BizCentral.
Soilbuild REIT will construct a new annex to the property.
With the acquisition of 39 Senoko Way, Soilbuild REIT’s portfolio has been enlarged to eight properties located in Singapore.