Soilbuild Reit obtains S$40m unsecured loan facility

SOILBUILD Business Space Reit has has entered into a loan agreement with the Bank of East Asia (BEA) for a S$40 million term loan facility and a S$5 million revolving credit facility.

The loan facility has a term of three years and bears an interest rate equal to a margin over the three-month Singapore dollar swap offer rate, Soilbuild said in a Singapore Exchange filing on Wednesday.

The loan facility will be used for the acquisition of Bukit Batok Connection, while the revolving credit facility will be used for general corporate funding.

This follows an announcement in August from the Reit that it will be looking to raise up to S$59.4 million via a preferential offering to partly fund the acquisition of Bukit Batok Connection.

The acquisition of the industrial property was previously announced in June.

"We are glad to have BEA's support in providing us a competitive unsecured facility which has enabled Soilbuild Reit to progress towards its goal of achieving financial flexibility while keeping its borrowing cost low," the Reit's chief executive Roy Teo said in a statement.