Five assets of AA Reit no longer needed as bank collateral

SINGAPORE - The Manager of AIMS AMP Capital Industrial Reit (AA Reit) said that five assets valued at $283.6 million have been legally freed from serving as bank security.

These five unencumbered assets together with the previous eight unencumbered assets, were valued at $527.2 million - some 42.9 per cent of the current total appraised value of the Singapore portfolio of $1.23 billion as at Sept 30.

Reit manager chief executive officer Koh Wee Lih said the release of the assets reflected its banking syndicate's confidence in the trust's financial position.

"Our interest cover ratio for 2Q FY2015 is a healthy 4.2 times, well about our bank covenant of 2.5 times," he said.

"The trust is in a strong financial position, with growing cashflows, high occupancy and an attractive development pipeline. Releasing these assets provides further financial flexibility and strengthens the balance sheet," he added.

The trust maintained aggregate leverage of 32.2 per cent as at Sept 30, averaging some 30 per cent for 20 consecutive quarters since December 2009.