Singapore-listed Soilbuild Business Space REIT (Soilbuild REIT) (SGX:SV3U) announced on 17 March 2015 that the upfront land premium to be paid to Jurong Town Corporation (JTC) for the lease of the land at 1 Fusionopolis Walk from 16 August 2013 to 31 May 2038 stands at SGD74 million.
The property on the land, Solaris, is leased by SB Solaris for a term of five years from 16 August 2013 on a triple net lease basis, under which SB Solaris is liable for the payment of all the land rent payable to JTC.
However SB Solaris has agreed in a separate agreement with Soilbuild REIT to bear SGD19 million of the upfront land premium while Soilbuild REIT will bear the remainder, being the sum of SGD55 million.
SB Solaris has agreed to extend an interest-free loan of SGD55 million to Soilbuild REIT for the purpose of paying its share of the upfront land premium. The interest-free loan shall be repaid on the expiry of the master lease agreement on 15 August 2018.
SB Solaris is a wholly owned subsidiary of Soilbuild Group Holdings Ltd, who is the sponsor of Soilbuild REIT.
Units of Soilbuild REIT are currently listed on the Singapore Exchange at SGD0.79.