AIMS AMP REIT stretches leases for 27 Penjuru Lane

96.7% of its underlying leases are extended.

In an SGX release, AIMS AMP Capital Industrial REIT announced it had successfully extended 96.7 percent of the underlying leases for 27 Penjuru Lane out to FY2016 and FY2018, once the asset’s master lease expires in December 2012.

27 Penjuru Lane represented 19.1% of the REIT’s total net rental income as at 30 September 2012. Newly secured sub-tenancy agreements at 27 Penjuru Lane will generate rental returns, which are on a weighted average 8.5 percent higher than the current master lease terms, reflecting strong market demand for high quality warehousing.

Management is currently in negotiations to renew the underlying leases for the remaining 3.3 percent of the 90,506 sqm net lettable area of 27 Penjuru Lane, once the master lease expires.

27 Penjuru Lane, located within the Jurong Industrial Estate, is approximately 16km from Singapore’s city centre and is easily accessed by expressways/major roads such as the Ayer Rajah Expressway, Penjuru Road and Jalan Buroh.