AIMS AMP Capital Industrial REIT has received a temporary occupation permit (TOP) for its redevelopment works at 30 & 32 Tuas West Road.
The permit, which was received from Singapore’s Building & Construction Authority (BCA) on 27 December, clears the property for tenancy activities.
30 & 32 Tuas West Road was the subject of redevelopment to convert two three-storey detached industrial buildings into a five-storey ramp-up warehouse facility, with nearly double the gross floor area at 288,000 square feet.
The redeveloped property, which has been pre-leased to Singapore logistics company CWT Limited, will deliver SGD4.15 million (USD3.1 million) in rental income yearly with fixed annual escalations, said the REIT.
“The project is in line with our focus on building long-term relationships with high-quality tenants by delivering purpose-built asset solutions to support their unique business needs”, said Koh Wee Lih, CEO of the REIT’s manager, in a statement to announce the TOP.
Prior to the redevelopment, annual rental income was SGD0.82 million annually. The property’s value has also increased to SGD60.7 million, up from SGD14.1 million previously.
AIMS AMP Capital Industrial REIT expects full quarter’s contribution from the redevelopment in 1Q 2018.
Units of the REIT finished the trading day about 1.5% higher from its previous close on the Singapore Exchange to end at SGD1.295.