AIMS APAC REIT to Acquire Sime Darby Business Centre in Singapore

News about AIMS AMP Capital Industrial REIT

AIMS APAC REIT is announcing the acquisition of the Sime Darby Business Centre in Singapore

Asset

The Sime Darby Business Centre is a showroom and business space at 315 Alexandra Road, Singapore. The light industrial facility is situated on a land area of 7,720 m² with 34.2 years left on its leasehold title. It has recently undergone a refurbishment program, with upgrades to the entry foyer and drop off canopy, common lift lobbies, walkways and toilets on each floor. It has a Net Property Income yield of 6.2%.

Financing

The $106.6 million operation (S$102 million price plus fees) will be financed by debt. Sime Darby Property Singapore Limited will leaseback 70% of the property for a period of 10 years with fixed annual rental escalation.

Expectations

The transaction is expected to increase the trust's WALE from 4.23 to 4.52 years, and push leverage to 39%. DPU is expected to increase, pro forma, from 9.50 to 9.98 cents per year.

AIMS AMP Capital Industrial REIT
Price1.500 SGD
NAV1.400 SGD
Yield (4 quarters)6.47%
Gearing24.7%