Cambridge Reit

Cambridge Reit: proposes to acquire an industrial property at 30 Teban Gardens Crescent for $41m (on par with JLL’s independent valuation), from Eurosports Auto (the Vendor). The property comprises, i) a purpose built 3-storey industrial building with a single storey factory cum car showroom, and ii) a brand new annex blk of a 2 storey showroom with ancillary office to be completed by the Vendor. The total expected gfa is 12,922 sm. The property is leased from JTC with an initial lease term of 10yrs commencing 1 Jun ’07, and a further lease term of 22yrs with approval by JTC. The Vendor has agreed to lease the property for the next 6 yrs. This will raise Cambridge Reit’s wt avg lease to expiry (WALE) from 3.2yrs to 3.3yrs. Cambridge intends to finance all acq costs from a combination of equity fund raising and drawdown of debt facilities. The acq is expected to complete only around Dec ’13, subject to relevant regulatory approvals. The Reit offers 7.7% yield.