Soilbuild REIT to splurge $18.3m on four-storey industrial building

Deal to be completed by 2Q.

According to OCBC Investment Research, Soilbuild Business Space REIT (Soilbuild REIT) announced last Fri the proposed acquisition of a four-storey industrial building known as 39 Senoko Way from third-party vendor Tellus Marine Engineering Pte Ltd (Tellus Marine).

Here's more:

The total cost of proposed transaction is expected to be S$18.3m, comprising the purchase price of S$18.0m and other acquisition-related expenses. Upon completion of the deal (expected 2Q14), Soilbuild REIT will lease the property back to Tellus Marine for a term of 10 years via triple-net lease arrangement.

Management believes that the acquisition of the property on a long leaseback term with annual rental step-ups and attractive NPI yield will provide additional growth driver for Soilbuild REIT, although no specific details were disclosed.