Mapletree Industrial Trust entered a deal to buy the nine-storey mixed-use property at 18 Tai Seng Street in Singapore for S$268.3 million, the REIT manager said in a filing to SGX on Thursday after the market close.
Under the deal, the trust will acquire all the units of Marina Trust, which holds the property, from Mapletree Tai Seng, which is an indirect wholly owned subsidiary of Mapletree Investments Pte. Ltd. (MIPL), it said.
The acquisition will be financed with debt financing, proceeds from an equity fundraising and/or internal cash resources, the REIT manager said.
The property is located in the Paya Lebar iPark, with accessibility to major expressways and with a direct connection to the Tai Seng MRT station via an underground link, it said.
“This is a rare opportunity to acquire a unique integrated industrial development in the modern Paya Lebar iPark,” Tham Kuo Wei, CEO of the REIT manager, Mapletree Industrial Trust Management, said in the statement.
“With its excellent connectivity as well as a wide variety of food and beverage offerings and amenities, 18 Tai Seng is a choice location for tenants who are looking for high quality business space in the city fringe,” Tham said.
The building has a committed occupancy of 94.3 percent, with 44 high-quality tenants, including multi-national companies in sectors including medical technology, information and communications technology and automotive technology, it said.
Around 95.7 percent of the building’s leases by gross rental income have built-in annual rental escalations, it said.
After the acquisition, Mapletree Industrial Trust’s assets under management will rise to S$4.7 billion, from S$4.4 billion, the filing said.