Singapore-listed industrial REIT Cambridge Industrial Trust (CIT) (SGX:J91U) announced on 8 December that it has entered into a sale and purchase agreement with engineering company M+W Singapore to acquire the property at 16 International Business Park in Singapore.
The property, a 3-storey purpose built complex located in the industrial suburb of Jurong East, is being acquired for a purchase consideration of SGD28.0 million.
16 International Business Park has a gross floor area of approximately 6,434 square metres and a remaining land tenure of approximately 41.6 years. Upon acquisition, CIT will lease the property to M+W Singapore for the remainder of its first 30-year land lease term of approximately 11.6 years. There will be options to renew the lease for two consecutive 5-year terms.
CIT has said that it intends to fund the acquisition with cash on hand and existing debt facilities.
Philip Levinson, CEO of the REIT’s manager, has described the acquisition as CIT’s first business park asset. “The property will yield positive returns and improve our overall portfolio quality”, said Levinson. “The long WALE of this property further supports and meets our objective of delivering secure and stable long term distributions to unitholders”, he added.
CIT currently has a portfolio of 49 industrial properties across Singapore with a total property value of approximately SGD1.3 billion. Units of CIT last closed at SGD0.68 on the Singapore Exchange.