Starhill Global REIT renews lease with Toshin Development for 12 years
The new lease will be valid from 8 June 2025 to 7 June 2037.
Starhill Global REIT (SGREIT) renewed its current master lease with Toshin Development Singapore (Toshin), which will expire in June 2025.
The new master lease agreement is valid for 12 years from 8 June 2025 until 7 June 2037.
Toshin can renew the contract for another six years to 7 June 2043, and another three years to 7 June 2046.
Under the agreement, the base rent for the first three years shall be about 1% higher than the base rent for the current master lease.
In addition, a profit-sharing scheme was also agreed upon by the two parties.
The parties will conduct a review of the annual fixed rent every three years during the term of the renewed master lease.
There will also be a downside protection based on the prevailing annual fixed rent, but during the term, any upside will be capped at 125% of the prevailing annual fixed rent.
SGREIT has also agreed to contribute up to $5.2m to Toshin for the renovation of the site to ensure that the mall is upgraded and maintained as a high-class shopping complex.