The former tenant of an asset rented out by Sabana Shari'ah Compliant Industrial Real Estate Investment Trust is paying $2.99 million as a final settlement following a lease termination.

Adviva Distribution will pay the amount to Sabana Reit's trustee HSBC Institutional Trust Services (Singapore), the Reit said on Thursday night.

The lease termination was brought forward to July 18 from Dec 12 by mutual agreement.

Sabana Reit said it does not expect any material impact on its distribution per unit for this financial year arising from the lease termination of the 10 Changi South Street 2 property. It added that it is seeking a new tenant.

In March, Adviva Distribution, which underwent an ownership change and is now wholly-owned by Meztoire, notified the trust that it would end lease. The terms call for nine months' notice.

In Sept 24, 2018, Sabana Reit said it received about $2.15 million from Adviva Distribution that would go towards outstanding rental arrears and late payment charges.

Sabana Reit had issued a notice of termination on Aug 31, citing a failure to pay rent, which contributed 6.5 per cent of the Reit's gross revenue for the quarter to June 30.