Starhill Global REIT nabs 5.5% rent increase for Toshin Master Lease

It will be effective for three years.

Starhill Global REIT (SGREIT) has clinched a 5.5% increase in base rent for its Toshin Master Lease.

According to a report by OCBC, the new base rent is effective for three years, beginning 8 June 2016.

The increase quantum was based on the median of three market rental valuations, undertaken by independent licensed valuers.

OCBC believes that given the weak retail industry conditions, the resulting rental increment from the Toshin Master Lease would provide SGREIT’s portfolio an element of defensiveness.

OCBC further notes that for March 2016, Toshin contributed roughly 19.7% of SGREIT’s portfolio gross rent.

In addition, the master lease covers all the retail strata area of Ngee Ann City Property owned by SGREIT, except level 5.