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Sabana Reit renews master lease worth S$3.76m with sponsor's subsidiary
SABANA Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) has renewed a master lease with a subsidiary of its sponsor, logistics player Vibrant Group, the manager disclosed on Tuesday.
The contract for 33 & 35 Penjuru Lane, near Jurong Port, is worth S$3.76 million, which the manager noted fell within the range given by independent valuer Suntec Real Estate Consultants on Apr 25.
The master lease, which came on the exercise of an option to renew, still has a successive option to renew for another year, if the parties agree on the rent for the renewal term.
"The landlord remains entitled to look for potential tenants for the property while negotiations are ongoing in respect of remaining renewal term," the manager added.
It said that, based on market conditions and the property's features, the rent is "in line with the prevailing market rents for similar properties in similar locations, and the entry into the master lease will provide continuing, predictable and stable cash flow and revenue".
The manager said that its audit committee reviewed and approved the master lease with Vibrant subsidiary Freight Links Express Logisticpark, which was deemed "on normal commercial terms and is not prejudicial to the interests of Sabana Reit and its minority unitholders".
Sabana Reit closed up by half a Singapore cent or 1.21 per cent at S$0.42 on Tuesday before the announcement.