AIMS APAC REIT is acquiring 315 Alexandra Road for SGD102 million.
The property is anchored by Sime Darby Property Singapore Limited, from whom it will be bought on a partial leaseback structure.
It will be acquired at an initial net property income (NPI) yield of 6.2%.
Sime Darby will leaseback 70% of the property’s total gross floor area for 10 years.
As such, the asset uplifts the REIT’s overall portfolio WALE to 4.52 years, and portfolio occupancy to 95.0%.
The acquisition will be fully funded by debt, comprising a new term loan and existing debt facilities.
With the proposed acquisition, the REIT’s aggregate leverage will increase to 39.0%.
AIMS APAC REIT was last done on the SGX at SGD1.29.