Cambridge – SGX

Cambridge Industrial Trust acquires 128 Joo Seng Road for S$10.0 million

9th April 2007, Singapore – Cambridge Industrial Trust (“CIT”) announced that it has signed a Put and Call Option Agreement to acquire 128 Joo Seng Road (the “Property”) for S$10.0 million. The acquisition which is funded entirely by the existing debt facility, will be accretive to CIT’s distributable income.

Mr Wilson Ang, Chief Executive Officer of the Manager, said, “The Joo Seng and MacPherson industrial area is considered one of the prime central locations in Singapore for industrial occupiers. With the acquisition of 128 Joo Seng Road, we will further increase our presence in the prime Joo Seng-MacPherson industrial district. Due to the current limited supply of office space, we expect some spill over effect as office occupiers migrate to industrial spaces as alternatives for their backroom operations. In addition to this, with the upcoming Circle Line and the new Kallang/Paya Lebar Expressway, we believe that building an increasing presence in this location will further enhance CIT’s portfolio.”

General Description of the Property

Completed circa 1994, the 7-storey light industrial building sits on a land area of 3,451.8 square metres and has a gross floor area of 8,519.64 square metres. The Property has a long land lease duration of 30 years with effect from 1 May 1992, with a confirmed option for a further term of 30 years. Located at the junction of Joo Seng Road and Kampong Ampat, it is approximately 10 km away from the city centre at Collyer Quay and is in close proximity to the upcoming Tai Seng (Circle Line) MRT station. The Property is also easily accessible via the Pan Island Expressway and the upcoming Kallang/Paya Lebar Expressway.

Upon completion of the Sale and Purchase, Seng Huat Packaging Pte Ltd (“Seng Huat”) will leaseback the Property for a 7-year term with an option to renew for a further term of 3 years. The rental escalation is 5% on the commencement of the third and fifth year. Seng Huat will bear the cost of maintenance of the Property.