Soilbuild REIT’s tenant currently occupying 2 Pioneer Sector 1 has gone into arrears over unpaid rent on the property, the REIT announced on 18 September.
The tenant, NK Ingredients Pte Ltd, owed Soilbuild REIT some SGD3.42 million in outstanding rent.
2 Pioneer Sector 1, which features a gross floor area of 312,375 square feet of gross floor area, is currently master-leased to NK Ingredients as the sole tenant.
NK Ingredients is involved in the manufacture of lanolin, lanolin derivatives, and cholesterol, according to information on the company’s websites.
As a result of the arrears, Soilbuild REIT has issued a letter of demand to NK Ingredients for the amount owed, and called upon the insurance guarantee provided by the company as part of the rent agreement.
As trustee of Soilbuild REIT, DBS Trustee Limited, held an insurance guarantee amounting to SGD5,110,677.