AIMS AMP Capital Industrial Reit (AA Reit) has received the temporary occupation permit (TOP) for its redevelopment at 30 and 32 Tuas West Road, the company announced yesterday.
The redevelopment has transformed the former two three-storey detached industrial buildings into a five-storey ramp-up warehouse facility with exclusive loading and unloading bays at each level.
The buildings are now valued at $60.7 million, up more than four times from its former value. The redevelopment has also nearly doubled the gross floor area from 159,717 sq ft to 288,663 sq ft.
The entire property is pre-leased to logistics company CWT Limited.
The completed development will deliver $4.15 million in rental income annually in the first year with fixed annual rent escalations over the term of the lease.
Mr Koh Wee Lih, chief executive officer of AA Reit Management said: "The project is in line with our focus on building long-term relationships with high-quality tenants by delivering purpose-built asset solutions to support their unique business needs. It also demonstrates the successful execution of our strategy to enhance underperforming assets, unlock inherent value from within our portfolio and delivering stable and sustainable value for our unit holders."
The buildings are located just minutes from the upcoming Tuas Link and Tuas West Road MRT stations, slated to be completed in the second quarter of next year. Singapore Exchange-listed AA Reit owns and invests in a diversified portfolio of income-producing industrial properties in the Asia-Pacific. Its sponsors are AIMS Financial Group and AMP Capital, part of the AMP Group, one of Australia's largest retail and corporate pension providers.
AA Reit's existing portfolio consists of 26 industrial properties, 25 of which are in Singapore. The remaining property is a business park property, Optus Centre, in New South Wales, Australia.
AA Reit's units rose two cents to $1.295 yesterday.