Sabana Reit’s tenant in Tuas Avenue 8 placed under provisional liquidation
The tenant, biotechnology company GDMC, accounted for 2.4% of the Reit’s total gross rental income for the FY ended Dec 31, 2023
THE tenant of Sabana Industrial Real Estate Investment Trust (Sabana Reit) at 30 and 32 Tuas Avenue 8 has been placed in provisional liquidation.
The Reit’s manager said in a bourse filing on Tuesday (Jun 11) that the tenant in question, biotechnology company GDMC, accounted for about 2.4 per cent of the Reit’s total gross rental income for the financial year ended Dec 31, 2023.
The manager expects that the overall impact to the Reit will be about 2.3 per cent of its pro forma distribution per unit in FY 2023.
The premises comprise two original “E8” JTC standard factories and an adjoining four-storey facility, with ancillary offices spanning 158,846 square feet in gross floor area.
Sabana Reit’s manager said that it is taking legal advice and will do what it can to limit the losses from this, including entering the premises, marketing the asset to prospective tenants, and offsetting outstanding rental payments with the tenant’s security deposit.
It noted that GDMC had paid its rent up to April.
Units in Sabana Reit closed flat on Tuesday at 35 cents before the announcement.
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