Refurbishments at AA Reit's NorthTech boost value to S$116.5m

THE manager of Aims Apac Reit (AA Reit) on Thursday announced that the base contract for the refurbishment at its industrial property NorthTech has been completed within budget. 

The enhancement works have also raised the property's value to S$116.5 million as at Jan 2, 2020, as valued by Savills Valuation and Professional Services, compared to S$102 million as valued at end-March 2018 by Colliers International Consultancy & Valuation (Singapore).

"The asset enhancement initiative (AEI) commenced in July 2018 and included upgrades to the drop-off porches, passenger lift lobbies and lift interiors, toilets, signages, external landscaping, and the air-conditioning system. There were also upgrades to the bicycle-parking area which saw the number of lots increase, in support of Singapore's car-lite vision.

"During the AEI, the property's rental income was not affected as the property remained operational while the upgrades were being carried out. As at 30 Sept 2019, NorthTech is fully occupied with a weighted average lease expiry of 3.29 years," the manager said.

It added that it believes the government's new masterplan for Woodlands North Coast to develop and upgrade the area into a vibrant centre for commercial, industrial and residential use will further enhance the value of the property.