Ascendas Real Estate Investment Trust (A-REIT) on Monday bought a light industrial property at Loyang Way for S$25 million.
It signed a put and call option agreement with Seow Khim Polythelene, a manufacturer of consumer plastic products.
Seow Khim will lease back the property for 12 years with stepped increases in rentals.
It also has an option to renew the lease for another three years. A-REIT said the acquisition will be positive for its distribution per unit.
The property at 8 Loyang Way 1 is located within the Loyang Industrial Estate and within a short driving distance to Changi Airport.
The property comprises two blocks of four-storey light industrial buildings on a land plot of 9,768 square metres.
The property has a gross floor area of 13,725 square metres and a net lettable area of 11,158 square metres.
Its lease expires on 16 July 2052. – CNA/ac
Source : Channel NewsAsia – 24 Mar 2008