Ascendas REIT will build a distribution facility at Changi LogisPark for some $32.5m.The facility is expected to be completed by the start of 2008.
A-REIT’s existing customer Zuellig Pharma, a marketing and distribution company for pharmaceutical products, will be the anchor tenant.
Zuellig has committed to leasing about 80 percent of the total lettable area for 10 years.
In a statement, A-REIT said it expects pro forma full year distribution per unit accretion of 0.02 cents per unit once the project is completed.
This assumes 87 percent occupancy and at prevailing market rent.
The two-story facility is located within the new Changi LogisPark (north), which is designated for the logistics, distribution and aeronautical industries.
It sits on a land area of 20,137 square metres.
The site has a lease of 60 years, with an option to renew for another 30 years.
Source: Channel NewsAsia, 21 November 2006