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Cambridge Industrial Trust in S$19.9m Jurong property deal with Unicable
CAMBRIDGE Industrial Trust (CIT) has entered into a sale-and-purchase agreement with Unicable to acquire a property in Jurong for a total of S$19.9 million.
The price includes S$16.2 million consideration for the property, an upfront land premium of S$3.3 million payable to JTC Corporation for the land lease term, fees payable to CIT's manager, as well as other fees and expenses linked to the acquisition.
The property, which is located at 160A Gul Circle, comprises a single-storey factory and a newly completed four-storey factory with an ancillary office. It has a gross floor area of about 8,000 square metres and a remaining land tenure of around 26 years.
The appraised value of the property by Jones Lang Lasalle as at Jan 31 this year was S$16.2 million.
CIT plans to fund the acquisition through cash on hand and existing debt facilities. The deal is expected to be completed by Q2 2015.
"This is a strong yielding and quality asset that will provide a steady income stream and enhance our overall portfolio," said Philip Levinson, chief executive of Cambridge Industrial Trust Management.
CIT plans to lease it to Unicable for five years, it said in an announcement to Singapore Exchange.