Sabana REIT

Sabana REIT: To acquire 39 Ubi Road 1, a 5-6 storey light industrial building on the western side of Ubi Rd 1 for $32.0m and lease back for 5 yrs to priv co Ascend Group. The property has a GFA of 96.4k sq ft and is now under renovation works for another 2-storey extension (to add 39.7k sq ft) and is a leasehold estate of 30 + 30 yrs tenure from 1 Jan 1992, with a remaining tenure of approx 40.4 yrs. Transaction is expected to add to the weighted lease tenure and provide yield accretion. Acq is to be funded by debt and to increase marginally from 25.1% to 27.7%.