Singapore-listed industrial REIT Cambridge Industrial Trust (CIT) (SGX:J91U) announced on 18 February that it will be acquiring 160A Gul Circle for a purchase consideration of SGD16.2 million.
The property to be acquired comprises of an existing single-storey factory and a newly completed four-storey factory with a gross floor area (GFA) of approximately 86,075 square feet.
The factory is situated within Jurong Industrial Estate and has remaining land tenure of approximately 26 years. Upon completion of the acquisition, the property will be leased to vendors Unicable for five years.
Management of CIT has described the acquisition as being in line with the REIT’s strategy to acquire yield-accretive assets. “This is a strong-yielding and quality asset that will provide a steady income stream and enhance our overall portfolio”, said Philip Levinson, CEO of the REIT’s manager.
The acquisition will cost about SGD19.9 million after taking into account the various transaction-related expenses and will be funded by existing debt facilities and cash. The acquisition is expected to be completed by 2Q2015.
Units of CIT are currently listed on the Singapore Exchange at SGD0.68.