Cambridge Industrial Trust to grab indirect stake in 3 Tuas South Ave 4

It will be worth around $15m.

According to a release, Cambridge Industrial Trust Management Limited, the Manager of Cambridge Industrial Trust announced that CIT will be acquiring an indirect interest in 3 Tuas South Avenue 4, its maiden property in the JTC Tuas Biomedical Park.

The property was introduced to CIT by Oxley Global Limited, one of the sponsors of the Manager. The acquiring entity will be Cambridge SPV 1 LLP, a special purpose vehicle created as a joint venture to acquire the property. CIT and Oxley will have a 60% and 40% interest in the SPV respectively.

The purchase consideration is S$15.0 mil, of which CIT’s share will be S$9.0 mil.

Located in the JTC Tuas Biomedical Park, a specific cluster designated for biomedical industries, the purpose-built 3-storey warehouse, manufacturing and distribution facility, having a gross floor area of approximately 316,000 sq ft and is situated on a land area of 643,000 sq ft.

Upon completion of the acquisition, the Property will be leased to Agila Specialties Global Pte Ltd (“Agila”), the specialties division of global pharmaceutical company Strides Arcolab Limited, for a period of 25 years.

Incorporated in 1990, Strides Arcolab Limited is a pharmaceutical company headquartered in Bangalore, India, with business interests in specialty pharmaceuticals, pharma generics and branded generics. It is part of the Strides Group, a fully integrated global life sciences company that is amongst the leading pharmaceutical companies in India today.

“This Property is a well-located, premium investment-grade asset that enhances the quality of CIT’s portfolio and further diversifies our asset and tenant base. The purchase price was derived on vacant possession basis and Oxley subsequently secured Agila as the master tenant, who will lease the entire property for a period of 25 years. This will increase the portfolio’s weighted average lease expiry from 3.0 years to 3.3 years,” said Mr Chris Calvert, Chief Executive Officer of CITM.

“This acquisition also demonstrates the value that our sponsors like the Oxley Group bring to the Trust. We hope to undertake more similar value-add acquisitions through such joint venture partnerships,” added Mr Calvert.