MP REIT secures nearly 20% rent rise for 226,000sf of Ngee Ann City space

Macquarie Prime Real Estate Investment Trust (MP REIT) has secured 19.75 percent higher rent from its tenant Toshin Development.

But when contacted, MP REIT declined to reveal details of the rent, saying it is confidential.

Toshin is the master lessee for about 226,000 square feet of retail space in Ngee Ann City.

The new rent will be locked in for three years from June 8 this year.

MP REIT says this is expected to account for a 7.2% increase in its annualised distribution per unit.

As at 31 March 2008, the Toshin master lease made up a quarter of the gross rent of MP REIT’s portfolio.

MP REIT owns about 27 percent of the strata title interest in Ngee Ann City, comprising 256,000 square feet of retail net lettable area and 141,000 square feet in office net lettable area.

The Toshin area is occupied by luxury retailers such as Louis Vuitton, Chanel, Piaget and Burberry. – CNA/ir

Source : Channel NewsAsia – 16 Jun 2008

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