Viva Industrial Trust buys Chin Bee Property for $96.8m

VITs' gearing projected to drop slightly to 39.8% post acquisition.

Viva Industrial Trust (VIT) has entered into an option agreement to acquire a newly completed ramp-up logistics development (Chin Bee Property) for a total acquisition cost of S$96.8m.

Post-placement and acquisition, OCBC Investment Research expects VIT's gearing is to drop slightly from 39.8% to 39.3%.

VITs' gearing projected to drop slightly to 39.8% post acquisition.

VITs' gearing projected to drop slightly to 39.8% post acquisition.

Viva Industrial Trust (VIT) has entered into an option agreement to acquire a newly completed ramp-up logistics development (Chin Bee Property) for a total acquisition cost of S$96.8m.

Post-placement and acquisition, OCBC Investment Research expects VIT's gearing is to drop slightly from 39.8% to 39.3%.

VITs' gearing projected to drop slightly to 39.8% post acquisition.

Viva Industrial Trust (VIT) has entered into an option agreement to acquire a newly completed ramp-up logistics development (Chin Bee Property) for a total acquisition cost of S$96.8m.

Post-placement and acquisition, OCBC expects VIT's gearing is to drop slightly from 39.8% to 39.3%.

The asset comprises of five levels of high-spec facilities, including two levels of integrated cold room facilities. The Chin Bee Property will be leased back to the master lessee, Sharikat Logistics, for a term of 7+3 years with a 1.5% annual rental escalation starting from the third year. 23.8% of the acquisition cost will be financed by the issuance of consideration
stapled securities, 45.0% by the net proceeds from a placement of 60.8m new securities, and 31.2% by debt financing.

Upon completion of the acquisition, VIT will increase its portfolio by 7.9% to S$1.28b.