Sabana REIT looks to acquire Changi South Street warehouse for $55m

It’s located in the Changi South Industrial Estate.

Sabana Shari’ah Compliant Industrial Real Estate Investment Trust today unveiled its plans to acquire a warehouse located along Changi South Street 2 for a total purchase consideration of $55 million.

The property is a purpose-built part single-storey/part six-storey warehouse building with ancillary office areas. It is a JTC leasehold estate of 30 + 27 years tenure commencing from 1 October 1994, with a remaining tenure of approximately 37 years.

The acquisition is expected to be completed on the fourth quarter of 2014.

Here’s more from Sabana REIT:

The Property was independently valued by Cushman & Wakefield VHS Pte. Ltd. on 16 July 2014 at S$54.3 million using the discounted cash flow method and the capitalisation approach, and includes the upfront land premium of approximately S$4.3 million for the balance of the first term.

Valuation but excluding the upfront land premium of approximately S$4.3 million for the balance of the JTC initial lease term (approximately ten years), which will be payable by Sabana REIT to JTC upon acceptance of the conditions imposed by JTC for consent by JTC to the assignment application. Sabana REIT is also responsible for the land rent or upfront land premium (as the case may be) for the second term of land tenure of 27 years.