Singapore-listed retail and office REIT, Starhill Global REIT, announced on 8 June that it has successfully secured a new master lease agreement with Toshin Development Singapore, the manager of Takashimaya department store, for its Ngee Ann City property.

The master lease has been agreed upon with a new base rent that is 5.5% higher than the existing rate and will be effective for three years commencing 8 June 2016.

“The rate is based on the average of three market rental valuations, undertaken by independent licensed valuers”, said the REIT in its statement.

Toshin is Starhill Global REIT’s largest tenant and the company’s master lease accounted for approximately 19.7% of the REIT’s portfolio gross rent in March 2016.

“We are pleased with the result of the rent review which reflects the premium location and prestigious asset quality of Ngee Ann City”, said Ho Sing, CEO of the REIT’s manager.

“Toshin is a valued tenant and we will continue to work closely with them to ensure Ngee Ann City continues to be the premier shopping destination along Orchard Road”, he added.

With the new master lease agreement, in addition to master tenancies secured for its Malaysian properties, approximately 33% of Starhill Global REIT’s gross rent have secured rent uplift commencing June 2016.

Units of Starhill Global REIT finished the trading day about 0.65% higher from its previous close on the Singapore Exchange to finish at SGD0.775.