Cambridge Industrial Trust to acquire two properties for S$56.3m

CIT purchases 30 Marsiling Industrial Estate Road 8 and 11 Woodlands Walk.

In a note to the Singapore Exchange, CIT said the Marsiling Property and the Woodlands Property are high quality industrial assets which will strengthen CIT’s presence in northern part of Singapore.

“We are pleased to announce the Acquisitions which are replacement assets for two of our existing properties which are in the process of being compulsory acquired. The Acquisitions are consistent with the Managers strategic objective of acquiring investment grade assets, designed to continually improve the quality of CIT’s property portfolio. Additionally, the Acquisitions will provide further portfolio diversification by reducing the reliance of CIT’s income stream on any single asset and tenant,” said Mr. Chris Calvert, Chief Executive Officer of CITM.

RBC Investor Services Trust Singapore Limited, in its capacity as trustee of CIT (the “Trustee”) has entered into separate agreements respectively for the proposed acquisitions.

The proposed acquisition of the property located at 30 Marsiling Industrial Estate Road 8 (the “Marsiling Property”) from Beyonics International Pte Ltd (“BIPL”) was entered on 14 September 2012 for a purchase consideration of S$39.0 million.

Meanwhile, the proposed acquisition of the property located in 11 Woodlands Walk (the “Woodlands Property”) from Hup Fatt Brothers Engineering Pte Ltd (“HFB”) for a purchase consideration of S$17.3 million.

In describing both properties, CIT said the Marsiling Property is a part 5/part 6 storey light industrial building that houses production, cleanrooms, warehouse and ancillary office. The current tenant is Beyonics International, and has a land area of ~8,095 sq m and a Gross Floor Area of ~20,249 sq m.

The Woodlands Property is a purpose built part 2/ part 3/part 4 storey industrial building. The current tenant is Hup Fatt Brothers Engineering, and has a land area of ~6,743 sq m and a Gross Floor Area of ~ 8,977 sq m.