100% tenancy guaranteed for 20 Gul Way

Annual rental income will soar to S$16.3m from a meager S$3.6m once Phases 1 and 2 are complete.

In a news release, AIMS AMP Capital Industrial REIT announced it has successfully completed 50% of Phase One of its inaugural redevelopment project at 20 Gul Way, and that the fully funded S$155 million project is progressing on time and on budget.

The manager has already secured 100% tenancy for the redeveloped site. Singapore logistics provider CWT Limited has signed a tenancy contract to lease 100% of the site. Levels one and five are leased for five years and two months, and levels two, three and four are leased for four years and two months.

AIMS AMP Capital Industrial REIT Chief Executive Officer, Nick McGrath said: “The site redevelopment will see 20 Gul Way emerge as a best-in-class ramp up five storey warehouse, adding significantly greater value to our portfolio of assets.

“Upon completion, the redevelopment of Gul Way is expected to create significant value for unitholders by lifting Distribution Per Unit by about 15% or approximately 1.465 cents. It is a good example of our strategy of redeveloping existing assets to unlock the value within the portfolio to deliver greater value for unitholders.

“The redevelopment will triple the gross floor area from 378,064 sqft to 1,159,536 sqft, improving the plot ratio from 0.46 to 1.4. Annual rental income will increase from S$3.6 million to S$16.3 million following completion of Phases One and Two of the development, and net property income yield on cost is estimated to be 8.1%,” Mr McGrath said.

Construction is progressing as planned and Phase One of 20 Gul Way is scheduled to reach completion in the fourth quarter of 2012.