SINGAPORE - Cambridge Industrial Trust has agreed to buy a light industrial building in Ang Mo Kio for $39.8 million, its manager said on Tuesday.

The six-storey building at 12 Ang Mo Kio Street 65 has a total gross floor area of about 180,425 sq ft, said Cambridge Industrial Trust Management.

The property is currently 85 per cent-leased. Cambridge Industrial Trust Management said the acquisition will be funded by existing cash and debt facilities.

"We are confident that there is potential for yield increment and capital appreciation once the property achieves full occupancy and through capitalising on the positive rental reversion of existing leases," said Mr Philip Levinson, chief executive of Cambridge Industrial Trust Management, on the property.

He expects the acquisition to be completed by the third quarter of this year.