Sabana REIT: To acq 2 properties. To acquire from private co Ringford, a 2-storey building with mezzanine flr and a 3-storey factory building at Joo Koon Circle, off Benoi Road, with GFA of approx 217.6 sq ft. Property is a JTC leasehold estate with remaining tenure of approx 36.3 yrs and Ringford has agreed to a master lease of 3 yrs. The total cost paid is $40.8m.
To acquire from private co Winfred a 6-storey warehouse located along Toh Tuck Link, off Toh Tuck Avenue, with GFA of approx 180.7 sq ft. Property comes with a master lease of the for 3 yrs. and a remaining JTC tenure of approx 45.3 yrs. The total cost is approx $40.4m.
The transactions will improve asset and tenant diversification. These acquisitions will also increase the weighted lease tenure of co's portfolio and reduce its lease expiry concentration in 2013 and 2015. This will be funded by debt and aggregate leverage is expected to increase to 33.7% from prev 25.1%.
Acquisitions have not specifically mentioned to be yield-accretive and may not be given Sabana’s high indicative yield at 9.9% currently.
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