MI-REIT : SGX
MACARTHURCOOK INDUSTRIAL REIT COMPLETES ACQUISITION OF WAREHOUSE PROPERTY FOR S$16.8 MILLION
– Increases portfolio value to S$472.9 million
– Yield-accretive acquisition
Singapore, 4 October 2007 – MacarthurCook Investment Managers (Asia) Limited (“MCKIM
Asia”), as Manager of MacarthurCook Industrial REIT ( “MI-REIT”), is pleased to announce that through HSBC Institutional Trust Services (Singapore) Limited ( the “Trustee”), MI-REIT has completed the acquisition of a property for a total consideration of S$16.8 million.
Following a simultaneous exchange and settlement of contracts, MI-REIT has completed the sale and purchase of 541 Yishun Industrial Park A (the “Completed Acquisition” or “541 Yishun”), in connection with the conditional sale and purchase agreement1 entered into between the Trustee and King Plastic Pte Ltd ( “King Plastic” or “the Vendor” ) on 3 October 2007.
King Plastic, a leading manufacturer and distributor of synthetic products will lease back the property for 12 years with an option to renew for another 6 years. With the completion of this acquisition and inclusion of the property, MI-REIT now comprises 15 assets with a total portfolio value of S$472.9 million2.
Mr Chris Calvert, CEO of the Manager, said: “The acquisition is in line with our aim to achieve distribution growth through the acquisition of properties that contribute to the long-term growth and income stability of the MI-REIT portfolio.”
Rationale for the acquisition
Yield Accretion
The acquisition of 541 Yishun Industrial Park A is expected to be accretive to MI-REIT’s distribution per unit (“DPU”), with the following pro forma financial effect: