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First Reit to buy logistics
centre for $42m
Posted by luxuryasiahome on September 8, 2008
First REIT said on Monday it has signed an agreement to buy a
healthcare logistics and distribution centre in Singapore for
S$42 million.
This marks its first acquisition of a healthcare logistics and
distribution centre and its fifth asset in Singapore, lifting
its assets under management by 13 per cent to S$368 million.
The acquisition is expected to be completed three months after
the temporary occupation permit (TOP) date, slated to be in July
2009.
Upon completion, First REIT will lease the centre back to the
vendor Tech-Link Storage Engineering for six years at a
commencement rental income of $3.23 million per annum with a
built-in annual rental escalation and an option for Tech-Link to
renew the lease for another seven years.
This is expected to provide an incremental annualised
distribution per unit of S$0.33. c
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