Viva Industrial Trust announced on 27 October that it will be acquiring a newly completed five-storey ramp-up logistics property at 6 Chin Bee Avenue for SGD87.3 million (USD63 million).

The property, which caters mainly to the food services sector, will be acquired from and leased back to multi-enterprise Sharikat National (Pte.) Ltd under a triple-net master lease agreement with provisions for rental escalations.

The lease will be for seven years, with an option for a further three years, said the trust.

In addition to the property acquisition costs, Viva Industrial Trust is also required to pay an upfront land premium for the balance of the property’s 30-year lease term that has been estimated at SGD5.7 million.

Upon acquisition, the trust’s portfolio will grow by 7.9% to approximately SGD1.28 billion.

To partially fund the acquisition, Viva Industrial Trust has executed a private placement exercise of 60,811,000 new units at SGD0.74 each to raise proceeds of SGD45.0 million.

The placement was oversubscribed, and drew strong demand from institutional investors, said the trust.

Units of Viva Industrial Trust finished the trading day about 0.6% lower from its previous close on the Singapore Exchange to end at SGD0.79.