Soilbuild REIT's Eightrium in Changi Business Park (Photo: REITsWeek)Soilbuild REIT's Eightrium in Changi Business Park (Photo: REITsWeek)

Singapore-listed Soilbuild Business Space REIT (Soilbuild REIT) announced on 25 November that it has completed the acquisition of a new annex block at 39 Senoko Way.

The property was originally acquired in 2014, and the new annex block’s temporary occupation permit was obtained from the authorities on 17 November 2016.

The annex block will add on about 18,088 square feet of gross floor area to 39 Senoko Way, which is located in Woodlands, and adjacent to shipyards in the area.

The property is currently fully leased to a single tenant, Tellus Marine Engineering Pte Ltd.

The balance of the annex block’s purchase consideration amounting to SGD3,418,000 (USD2.4 million) was fully funded with an unsecured bank facility that was announced in September 2016.

In connection with the annex block’s acquisition, Soilbuild REIT has entered into an agreement to extend Tellus Marine Engineering’s lease on the property.

Soilbuild REIT’s portfolio asset value remains at SGD1.3 billion after the acquisition.

Units of Soilbuild finished the trading day unchanged from its previous close on the Singapore Exchange at SGD0.64.

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.