AIMS APAC REIT has secured a master tenant for the entire property at 3 Tuas Avenue 2, which is currently undergoing redevelopment, the REIT said in a filing to SGX Thursday.
“Securing a master tenant and catering for their specific operational needs is testament to AA REIT’s commitment in fostering strong tenant
partnerships and dedication to active asset management,” Koh Wee Lih, CEO of the REIT’s manager, AIMS APAC REIT Management, said in the statement.
The tenant is a U.S.-based global medical device company and will lease the entire 268,000 square foot property with a ten-year master lease on a triple net lease basis, with rental escalations every two years in the initial term, the filing said.
The lease contains options to renew for up to 20 more years after the initial ten-year term, AA REIT said.
The property is expected to provide an around 7.3 percent initial net property income yield, AA REIT said.
The redevelopment project had been due for completion in the second half of this year, but redesigning the base-build to cater to the master tenant’s requirements has pushed the expected completion to the first half of 2020, AA REIT said.
The project development cost is estimated at S$48.2 million, and the redesign of the base-build isn’t expected to materially impact the overall cost, the REIT said.
The 3 Tuas Avenue 2 property, located in the Jurong Industrial Estate, near the Tuas Crescent MRT station, will be converted into a ramp-up industrial facility suitable for production and storage, AA REIT said.
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