Singapore-listed Soilbuild Business Space REIT (Soilbuild REIT) announced on 27 September that it has completed the acquisition of 2 Bukit Batok Street 23.

The nine-storey property, which is more commonly known as Bukit Batok Connection, has been acquired from SB (Westview) Investment Pte Ltd - a subsidiary of the industrial REIT’s sponsor, Soilbuild Group Holdings.

Soilbuild REIT first announced in June 2016 that it was acquiring the property, which features a leasehold term of 30 years commencing November 2012, and a net lettable area of 377,776 square feet, for SGD96.3 million (USD70.8 million).

In line with the acquisition, Soilbuild REIT has entered into a master lease agreement with SB (Westview) to lease-back the property for a term of seven years on a double net lease basis.

Rent for the first year under the master lease agreement has been fixed at SGD8.0 million, and subject to a rental escalation of up to 2.0% every year.

Soilbuild REIT also announced on the same day that it has fully utilised the proceeds from a preferential offering exercise that was launched in August 2016.

The exercise, which offered one new unit for every ten units in the REIT, raised net proceeds of approximately SGD59.1 million to partially fund the acquisition of Bukit Batok Connection.

Units of Soilbuild REIT finished the trading day about 0.7% higher from its previous close on the Singapore Exchange to end at SGD0.695.