Cambridge REIT/Nobel Design: Cambridge has proposed to acquire 16 Tai Seng Str for $59.3m from Nobel Design in a sale and leaseback scheme. 16 Tai Seng Street is a 5 storey industrial building with an ancillary showroom, with GFA of approx16.3k sqm and has a 30+30 yrs tenure.
Nobel Design will undertake alteration and additions (A&A works) for additional floors to increase GFA to 19.9k sqm and this will be compensated by Cambridge paying an additional $13.1m.
The total appraised value including the A&A works is approx $72.3m. The REIT intends to fund this acquisition through debt. Cambridge REIT has a est yield 8.5%
Nobel Design will book a disposal gain of $54.6m and leaseback the property. Nobel Design has a NAV of 26.4c at P/B of1.4x. Gain will be approx 32.4c and is sizeable to mkt cap of 63.9m. Co is up 10% today
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