Viva Industrial Trust buys logistics property for S$87 million

VIVA Industrial Trust on Wednesday said that it has entered into an option agreement with Sharikat National to buy a logistics property at 6 Chin Bee Avenue for S$87.3 million.

This will come together with the mechanical and electrical equipment and the lease of the property to Sharikat Logistics. The option may be exercised only after the requisite approvals from JTC have been obtained.

The property is a newly completed ramp-up logistics development that comprises five levels of high-specification warehouse facilities, including two levels of integrated cold room facilities, one level of ambient temperature foods storage facility, as well as a mezzanine level on each warehouse floor accommodating storage, kitchen and ancillary showrooms and offices.

On top of the purchase consideration, the real estate investment trust (Reit) trustee is also required to pay an upfront land premium for the balance of the 30-year JTC lease term of S$5.7 million.

The acquisition will be financed by issuance of consideration stapled securities to the vendor (S$23 million), net proceeds from a private placement and debt financing.

The trust halted trading in its units before the stock market opened on Wednesday.