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.