Singapore-listed industrial REIT, Sabana (SGX:M1GU), announced on 24 November that it has renewed three separate master leases for its properties at 51 Penjuru Road, 33 & 35 Penjuru Lane and 18 Gul Drive respectively.
51 Penjuru Road and 33 & 35 Penjuru Lane are currently leased by Freight Links Express while 18 Gul Drive is occupied by Crystal Freight Services.
The lease term for each of the three master Leases will be for one year commencing from 26 November 2015 with an option to renew for another year, said the REIT in its announcement. “The aggregate rental for the initial term of the three master leases, which are on triple-net basis, amounts to approximately SGD10.1 million”, it added.
“Having considered the prevailing market conditions, Singapore’s economic performance and attributes of the properties as well as the independent market report, the manager is of the view that the agreed rental rate for each of the properties is in line with the prevailing market rents for similar properties in similar locations, and the entry into the master leases will provide continuing, predictable and stable cash flow and revenue to Sabana REIT.
Units of Sabana REIT are currently listed on the Singapore Exchange at SGD0.73.