MIT – BT

MIT to develop $50m BTS facility

Mapletree Industrial Trust (MIT) will develop a build-to-suit facility for Kulicke & Soffa (K&S), its manager said on Thursday.

The BTS facility will be a five-storey high specification light industrial building with a gross floor area of about 30,800 square metres. Total development cost is estimated to be S$50 million.

MIT said it has sufficient financial flexibility and capacity to fund the development of this BTS facility. Assuming that the development is fully funded by debt, the aggregate leverage ratio is expected to increase marginally from 37.8 per cent to 38.8 per cent.

The facility is expected to be completed in the second half of 2013. K&S will occupy 69 per cent of the net lettable area for a 10-year lease term with the option to renew for two additional 10-year terms.