Soilbuild Reit claims unpaid rent from Technics Offshore Engineering and Technics oil & Gas

SINGAPORE - Soilbuild Business Space Real Estate Investment Trust (Soilbuild Reit), has through its trustee - DBS Trustee - filed a writ of summons and statement of claim against Technics Offshore Engineering and Technics oil & Gas in the High Court on Wednesday.

SB REIT Management, the manager of Soilbuild Reit said the action taken is further to the letters issued against the two companies.

Technics Offshore Engineering is a tenant of the property at 72 Loyang Way - a property under Soilbuild Reit's portfolio.

Technics oil & Gas was the guarantor, and had guaranteed that Technics Offshore Engineering would punctually pay the rent and other sums under the lease agreement. SB REIT Management said Technics oil & Gas had also undertaken to make the payments should Technics Offshore Engineering default.

In a stock exchange filing, the trust manager said DBS Trustee is seeking $2.19 million in missed payment in rents and other outstanding sums and continuing arrears in rentals and amounts due in accordance with the lease agreement dated May 27, 2015.

It is also claiming the security deposit for the second year of the lease amounting to $11.81 million, the interest at the rate of 8 per cent per year until the date of full payment, as well as legal and other costs on an indemnity basis as a result of the default by Technics Offshore Engineering .

The deadline for the payment of the security deposit was April 27.

Soilbuild Reit has a portfolio of business parks and industrial properties used by industries engaging in manufacturing, engineering, logistic, warehousing, electronics, marine, oil & gas, research and development and value-added knowledge-based activities.

Its portfolio of properties includes Solaris, a landmark development in one-north, Eightrium @ Changi Business Park, Tuas Connection and West Park BizCentral. Soilbuild Reit's portfolio has a net lettable area of 3,537,792 square feet, according to its website.