Cambridge – SGX
Cambridge Industrial Trust acquires 28 Senoko Drive for S$12.0 million
25th April 2007, Singapore – Cambridge Industrial Trust (“CIT”) announced that it has signed a Put and Call Option Agreement to acquire 28 Senoko Drive (the “Property”) for S$12.0 million from SGX-listed company Tat Seng Packaging Group Ltd (“Tat Seng”).
The acquisition is expected to be financed by debt or alternative funding sources in line with the Manager’s capital management strategy to optimize the funding of the Trust.
Mr Wilson Ang, Chief Executive Officer of the Manager, said, “We are pleased to partner Tat Seng in this sale and leaseback deal. Tat Seng has a long history in the paper industry with sound financial standing. The 15 years lease term of the property shows the strong commitment by Tat Seng. As a result, this transaction brings our weighted average lease term from 7.41 years to 7.67 years.”
Tat Seng’s Managing Director, Mr Loh See Moon said,” We are pleased to enter into this transaction with Cambridge Industrial Trust as it provides an opportunity for Tat Seng to unlock the value of the Property and enable our resources to be more efficiently redeployed towards the expansion of our business.”
General Description of the Property
Completed in March 1997, the 4-storey ancillary office with an extended single storey warehouse/industrial block sits on a land area of 20,070.9 square metres and has a gross floor area of 14,803.0 square metres. The Property has a land lease duration of 30 years with effect from 16 Dec 1979, with an option to renew for a further term of 30 years.
Located along Senoko Drive, off Admiralty Road West and within Woodlands East Industrial Estate. The Property is approximately 25.5 km away from the city centre at Collyer Quay. Public transport facilities are available along Admiralty Road West and the Admiralty MRT is about 4 km away.
Upon completion of the Sale and Purchase, Tat Seng will leaseback the Property for a 15-year term. The rental escalation is 7% on the commencement of the fourth, seventh, tenth and thirteenth year. Tat Seng will bear the cost of maintaining the Property while CIT will bear the cost land rent and property tax.