First REIT said on Monday it has signed an agreement to buy a healthcare logistics and distribution centre in Singapore for S$42 million.

This marks its first acquisition of a healthcare logistics and distribution centre and its fifth asset in Singapore, lifting its assets under management by 13 per cent to S$368 million.

The acquisition is expected to be completed three months after the temporary occupation permit (TOP) date, slated to be in July 2009.

Upon completion, First REIT will lease the centre back to the vendor Tech-Link Storage Engineering for six years at a commencement rental income of $3.23 million per annum with a built-in annual rental escalation and an option for Tech-Link to renew the lease for another seven years.

This is expected to provide an incremental annualised distribution per unit of S$0.33.