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Aims Apac Reit secures master tenant for Tuas property
AIMS Apac Reit (AA Reit) announced on Thursday it has secured a master tenant for its property at 3 Tuas Avenue 2.
A global medical device company, headquartered in the United States, will occupy the entire premises of approximately 268,000 square feet, said AA Reit's manager Aims Apac Reit Management in a regulatory filing.
The tenant has committed to a 10-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 10-year term.
The Tuas property, which was originally projected to have its redevelopment 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. This, however, will not have a material impact on the overall redevelopment cost of the property.
It is expected that the Tuas property tenancy will provide an approximate initial net property income yield of 7.3 per cent, based on the estimated development cost of S$48.2 million.
Koh Wee Lih, chief executive of Aims Apac Reit Management, 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 testament to AA Reit's commitment in fostering strong tenant partnerships and dedication to active asset management."
Units of AA Reit ended one Singapore cent or 0.68 per cent lower at S$1.46 on Thursday before the announcement.