Key Points
- The Manager of MapletreeLog has signed a Sale and Purchase agreement and completed the acquisition of the Liang Huat Building at 51 Benoi Road, Singapore at a purchase price of S$55 million.
- The Property comprises six blocks of industrial warehouses, including two ancillary buildings.
- Strategically located in the Jurong area near the Joo Koon MRT station, it is also well-connected to the Ayer Rajah and Pan Island Expressways.
- The acquisition provides an initial net property yield of 7.8%.
- The vendor, Khai Wah Development Pte Ltd, is a wholly owned subsidiary of Ho Lee Group Pte Ltd (“Ho Lee Group”).
- Currently, 40% of the Property is occupied by companies within the Ho Lee Group while the balance is leased to third parties.
- The vendor will provide rental income guarantee for existing leases that are
deemed to be below that of the market in the vicinity. - The rental guarantee has a yearly escalation of 2% for a period of 5 years.
- Outgoings such as land rent, property tax and property maintenance of this multi-tenanted facility will also be borne by the vendor during this period.
- With the addition of this Property, MapletreeLog’s total portfolio will increase to 94 properties with a book value of approximately $3.4 billion.
- This acquisition is funded with the proceeds from the recent equity fund raising exercise announced on 21 September 2010 (“EFR Announcement”).
- This acquisition was one of the four potential acquisitions identified in the EFR Announcement and the second acquisition of the four to be completed.
- MapletreeLog Completes Acquisition of 51st Property in Singapore for S$18.3 million - 25 OCT 2010
- Mapletreelog signs sale & leaseback agreement with Hamakyorex for Distribution Centre worth JPY 1.05 billion
- MapletreeLog's Launch of Equity Fund Raising to raise approximately S$300 million in Capital to Fuel Growth - 21 SEP 2010
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