SGX queries Cambridge Industrial Trust on land allocation of two BTS facilities

CIT has been assigned the land at Tuas View Circuit to develop a Built-to-Suit facility for Peter’s Polyethylene Industries.

According to a release, on 17 October 2011 SGX-ST requested that Cambridge Industrial Trust provide further information in relation to CIT’s announcement on Assignment and Allocation of Land of Two Built-To-Suit Facilities and The Acquisition of Pioneer Crescent Property (released via SGXNET on 12 October 2011).

SGX-ST requested CIT to clarify the terms of the Peters Built-to-Suit Arrangement.

CIT has been assigned the land at Tuas View Circuit to develop a Built-to-Suit facility for Peter’s Polyethylene Industries Pte Ltd, subject to the terms in JTC’s consent letter.

A lease of the site for a term of thirty (30) years will be granted by JTC to CIT subject to the fulfillment of JTC’s fixed investment criteria and compliance with their terms and conditions. A lease will then be granted to Peter’s for a term of ten (10) years with an option to renew for another five (5) years.

Property development activities, such as these BTS facilities, are permissible under 7.1(d) of Appendix 6 Investment: Property Funds of the Code on Collective Investment Schemes, subject to the total contract value of property development activities undertaken and investments in uncompleted property developments not exceeding 10% of the property fund’s deposited property.