SINGAPORE - Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) has agreed to acquire a property in Changi for $50 million and lease it back to the seller.

The warehouse building if located at 10 Changi South Street 2, within the Changi South Industrial Estate next to Changi Business Park, said Sabana Reit's manager on Friday.

It has a gross floor area of 189,609 sq ft and a remaining leasehold tenure of about 37 years.

Property firm Cushman & Wakefield VHS has valued the property at $54.3 million, including an upfront land premium of $4.3 million to JTC, which owns the estate.

The total cost of the acquisition works out to $55.1 million, which includes the upfront land premium, the stamp fee on the land premium, the acquisition fee and other fees.

The Reit will lease out the property for an annual net rent of $4 million, which is subject to rise at 1.5 per cent per year.