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AIMS APAC REIT To Acquire Ramp-Up Logistics Warehose

AIMS APAC REIT To Acquire Ramp-Up Logistics Warehose

August 11, 2020 — AIMS APAC REIT Management Limited as Manager of AIMS APAC REIT, announced that it is set to acquire 7 Bulim Street, located in the Jurong West Logistics Cluster, Singapore, for a purchase consideration of S$129.6 million from Titan Pte. Ltd. The Property, fully leased to KWE-Kintetsu World Express (S) Pte Ltd (KWE), will be acquired at an initial Net Property Income (NPI) yield of 7.07%.

The Manager’s Chief Executive Officer, Mr Koh Wee Lih commented, “The Proposed Acquisition further strengthens AA REIT’s portfolio of industrial and logistics assets in Singapore, and is in line with our strategy to build a high-quality, diversified portfolio of assets that create long-term value for our Unitholders.

“The yield accretive acquisition will enhance the income of AA REIT’s portfolio amidst the current challenging market conditions, and the strong lease covenant and master tenant provides stability. The modern ramp-up warehouse presents an attractive long-term investment opportunity, as a strategically located property within the Jurong Innovation District, a first in this advanced manufacturing campus, with good connectivity to major expressways, and the future Tuas Mega Port and Checkpoint.”

The Property will be acquired with an existing master lease to KWE, a wholly-owned subsidiary of a major Japanese freight forwarding and logistics group3. The existing lease commenced on 1 January 2014 for a term of 10 years, with a five-year option for the master tenant to renew its lease at the then prevailing market rate by 30 June 2023.

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