It is the newest nine-storey mixed-use building in Payar Lebar iPark.
Real estate investment trust Mapletree Industrial Trust (MIT) entered a conditional unit purchase agreement with Mapletree Tai Seng (MTSPL) to buy a mixed-use property at 18 Tai Seng for $262.2m, an announcement revealed.
The property is a nine-storey high-specification mixed-use development comprising of Business 2 industrial, office and retail spaces with a total gross floor area (GFA) of approximately 443,810 sqft. It it also connected directly by an underground pedestrian link to Tai Seng MRT station and is accessible via the Kallang-Paya Lebar, Pan-Island and Central expressways.
According to MIT, the site was the last land plot in the Paya Lebar iPark launched by JTC via its industrial government land sales programme in 2013. The industrial and office spaces have large column-free floor plates of over 50,000 sqft that offers businesses flexibility in designing efficient work spaces. The Business 2 industrial space spans five storeys whilst the office space takes up a single floor.
Meanwhile, its retail space extends over two floors and offers a variety of dining options such as Bakerzin, Jalan Kayu Prata Cafe, Japanese Soba Noodles Tsuta and Tim Ho Wan. It also houses other retail amenities including a supermarket, clinic, childcare centre, laundry and optometry services.
The property has a tenant base of 44 tenants including multinational firms in high value-added services such as medical technology, information and communications technology (ICT) and automotive technology, the announcement highlighted. As of 13 December, the committed occupancy rate is 94.3% with all the committed leases expected to commence progressively by 1 March 2019.
The total acquisition cost is estimated to reach $271m comprising of the estimated $75m aggregate consideration, $156.8m new trustee’s loan, the subscription of the Marina Trust subscription units for an aggregate amount of $35m and an approximate acquisition fee of $2.7m. An estimated $1.5m worth of professional fees and expenses may also be incurred by MIT in connection with the proposed acquisition.
Excluding the acquisition fee which is payable in units, the method of financing for the remaining total acquisition is still unknown.
“The final decision regarding whether the remaining total acquisition outlay will be funded entirely by debt financing or any combination of debt financing, an equity fund raising and/or internal cash resources will be made by MIT at an appropriate time, taking into account the then prevailing market conditions,” the REIT stated in its announcement.
The proposed acquisition is in line with MIT’s strategy to focus on the hi-tech buildings segment and will further enhance its portfolio. Upon completion, MIT’s total assets under management (AUM) will increase from $4.4b as of 30 September to $4.7b. The hi-tech buildings segment will account for 42.7% of the MIT portfolio, the firm noted.
Photo from Google Street View.
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