Featured Articles

Featured Articles
Ever wonder how to start using CPF to buy shares? Do visit Using CPF to buy shares (CPF Investment Scheme CPFIS-OA)

Advertisement

Directory

All about REIT Introduces concepts and terminologies about REIT.

About a Reit Talks about a particular REIT. Includes latest or historical performance, its business, and more.

Books and Thoughts About investment books and thoughts after reading.

REIT Financial News Latest financial news related to REIT

Commentary Commentary about news or trends affecting the REITs, or about the Market in general.

General Investment Tips, guide or thoughts about investment in general.

Monday, November 29, 2010

MapletreeLog Expands Singapore Portfolio with Acquisition of Liang Huat Building - 26 NOV 2010

MapletreeLog Expands Singapore Portfolio with Acquisition of Liang Huat Building.
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.
Related Posts



No comments:

Post a Comment

Blog Archive