Soilbuild Business Space REIT property in Changi Business Park, EightriumSoilbuild Business Space REIT property in Changi Business Park, Eightrium

Singapore-listed industrial REIT, Soilbuild Business Space REIT, announced on 18 May that it has, through DBS Trustee Limited, filed a writ of summons and statement of claim against the tenant on its property located at 72 Loyang Way.

The tenant has been named as Technics Offshore Engineering Pte Ltd, a related company of Singapore mainboard-listed Technics Oil & Gas Limited.

Soilbuild REIT is claiming a sum of SGD2.19 million for the tenant’s default in payment of rent, a security deposit for the second year of lease amounting to SGD11.8 million, and other costs.

Technics Oil & Gas Limited has also been named in the writ of summons and statement of claim as it has, as guarantor, undertaken to pay the rent and all other sums payable under the lease agreement in the event that the tenant defaults on its payments.

However the REIT’s manager has said that it does not expect the legal action to have an immediate financial impact on Soilbuild REIT’s distribution per unit for the current financial year. “In the event there are any material developments, the manager will release further announcements as necessary on this matter”, it said in its statement.

Units of Soilbuild Business Space REIT finished the trading day about 1.4% lower from its previous close on the Singapore Exchange to end at SGD0.705.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.