Singapore-listed industrial REIT Cambridge Industrial Trust (CIT) (SGX:J91U) announced on 23 March that it has acquired the remaining 40% interest in Cambridge SPV1 LLP from Oxley Projects for a purchase consideration of approximately SGD11 million.

The LLP holds 3 Tuas South Avenue 4, an industrial property which CIT now wholly owns following the completion of the acquisition on 20 March 2015. The acquisition was fully funded by existing debt facilities.

Philip Levinson, CEO of CIT’s manager, describes the acquisition of the LLP as one that adds an additional gross floor area of approximately 320,000 square feet for the REIT. “This property, with built-in rental escalations and a WALE of 23 years, enhances and complements our overall portfolio as well as ensure organic growth and income stability”, said Levinson adding that the property increases CIT’s exposure to the growing pharmaceuticals sector.

The property was originally acquired by the LLP, which CIT held a 60% interest, on 19 March 2013. The three-storey warehouse, manufacturing and distribution facility is located within the Jurong Town Corporation in a cluster designated for biomedical industries.

3 Tuas South Avenue 4 has a gross floor area of approximately 320,000 square feet on a land area of approximately 643,000 square feet. The land is subject to a JTC leasehold for 30+30 years with effect from 1 May 1999.

The property is currently leased to Agila Specialties Global, a subsidiary of Mylan Inc., a leading generics and specialty pharmaceutical companies, for a period of 25 years commencing 19 March 2013.

3 Tuas South Avenue 4 has a weighted average lease expiry (WALE) of 23 years with built-in rental escalations. There is also future expansion potential to maximise the underutilised plot ratio of the site.

Units of CIT are currently listed on the Singapore Exchange at SGD0.70.