Singapore-listed industrial and business parks real estate investment trust, Soildbuild Business Space REIT (Soilbuild REIT) (SGX:SV3U), announced on 27 May that it has completed the acquisition of 72 Loyang Way.
The acquisition, which cost some SGD98.1 million inclusive of the purchase consideration of SGD97.0 million was first announced in March 2015.
The property consists of two blocks of 3-storey and 4-storey ancillary office, two high ceiling single-storey production facilities, a blasting and spray painting chamber, a 200 worker dormitory and a jetty with 142 metres of sea frontage which serves as a fully-integrated offshore supply base.
Technics Offshore Engineering, as master tenant of the property, will lease 72 Loyang Way for a term of 15 years with an initial rental payable of SGD7.87 million per annum. The lease is structured on a triple net basis and subject to a rental escalation of up to 2.25% per annum starting from the third year.
Technics Offshore Engineering was the previous owner of the property.
With the completion of the Acquisition, Soilbuild REIT’s portfolio now comprises eleven properties located across Singapore with an asset value of SGD1.19 billion.
Units of Soilbuild REIT closed the trading day about 0.5% higher to end at SGD0.85 on the Singapore Exchange.