SINGAPORE – Further to its announcement on 17 May 2018, AIMS APAC REIT Management Limited (Manager) of AIMS APAC REIT (AA REIT) today announced it has successfully secured a master tenant for its property at 3 Tuas Avenue 2.
The redevelopment of the property, which was originally projected to be completed in the second half of 2019, is now expected to be completed in the first half of 2020 due to redesigning of the property’s base-build to cater for the master tenant’s operational requirements.
However, the redesigning of the property’s base-build will not have a material impact on the overall redevelopment cost of the property.
The master tenant, a global medical device company with headquarters in the USA, will occupy the entire premises of approximately 268,000 sq ft upon completion. The tenant has committed to a ten-year master lease on a triple net lease basis, with rental escalations every two years during the initial term, and options to renew the lease for up to a further 20 years after the expiry of the initial ten-year term.
The project development cost is estimated to be S$48.2 million and the property’s value on an “as-if-completed” basis is circa S$51.8 million. The property is expected to provide an approximate initial net property income yield of 7.3%.
The Manager’s Chief Executive Officer Mr Koh Wee Lih said, “We are pleased to announce that we have reached an agreement to fully lease 3 Tuas Avenue 2 to the master tenant following completion of the ongoing redevelopment project. Securing a master tenant and catering for their specific operational needs is a testament to AA REIT’s commitment to fostering strong tenant partnerships and dedication to active asset management.
“The Manager constantly looks for ways to optimise and strengthen AA REIT’s portfolio to ensure we can achieve long-term value creation for AA REIT’s Unitholders and build a high-quality portfolio capable of evolving to meet the changing market and tenant needs.”
As part of the design-and-build redevelopment project, 3 Tuas Avenue 2 will be transformed into a modern and versatile ramp-up industrial facility suitable for production and storage. The property is located right at the heart of the Jurong Industrial Estate, in close proximity to Tuas Crescent MRT station and two major expressways and is well-connected within the area and to the city.
This article is contributed by AIMS APAC REIT.