Sabana Reit gets URA nod for S$20 million enhancement works at Tuas warehouse
Jude Chan
THE manager of Sabana Industrial Real Estate Investment Trust (Sabana Reit) on Tuesday (Apr 4) announced that it had obtained provisional permission from the Urban Redevelopment Authority (URA) for additions and alterations to its property at 1 Tuas Avenue 4.
The development cost of this asset enhancement initiative (AEI) will be an estimated S$20 million, the manager said. The works will be internally funded.
The Reit had earlier announced that it had obtained the consent of JTC Corporation for the addition and alteration works. This paved the way for further submissions to relevant authorities, such as URA, for approvals.
Post-AEI, the property, which the Reit manager has dubbed 1TA4, will comprise a 156,000 square foot warehouse, production facility and ancillary office.
1TA4 will also incorporate solar panels that can potentially generate more than 1,000 MW hours of energy per year, the manager said.
Last week, it announced that it was partnering Keppel EaaS, a wholly owned subsidiary of Keppel Infrastructure, to install photovoltaic solar panels across four of its properties, including 1TA4.
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The 1TA4 project aims to obtain its temporary occupation permit by the first half of 2024.
The Reit manager said it is currently in talks with prospective tenants, including companies in the logistics and manufacturing trade sectors.
“Demand for warehouses continues to be a bright spot, based on our leasing enquiries and the positive response that we are seeing,” said Donald Han, chief executive officer of Sabana Reit’s manager.
“Going the route of additions and alterations will enable us to achieve a relatively shorter project timeline and, at the same time, maximise the use of the existing building structure,” he added.
Units of Sabana Reit closed 1.2 per cent or S$0.005 higher at S$0.44 on Tuesday, before the announcement.
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