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AIMS AMP extends underlying Penjuru Lane leases
04/07/2012AIMS AMP Capital Industrial REIT has successfully extended 55 percent of its underlying leases at 27 Penjuru Lane (pictured) to FY 2016 and FY 2018. The extended leases will take effect once the asset's master lease expires in FY 2013.
"We are actively managing our lease expiry profile risk and achieving positive rental growth in the process by extending the underlying leases in master lease properties which are reverting to multi-tenancy properties," said Nick McGrath, Chief Executive Officer at AIMS AMP Capital Industrial REIT.
McGrath added that the company has reduced its underlying lease expiry exposure for FY 2013 to 18.0 percent as of 30 June.
"The positive rental reversion achieved will generate attractive returns for unitholders once the
master lease properties revert to multi-tenancy properties."
The newly-secured sub-tenancy agreements are expected to yield rental returns that are 7.5
percent higher than those of the current master lease terms.
Meanwhile, the management is now in talks to renew the underlying leases for 45 percent of the 90,506 sq m net lettable area (NLA) at 27 Penjuru Lane.
"AIMS AMP Capital Industrial REIT's industrial assets are high quality and strategically located
close to major transport hubs in Singapore. Demand for quality warehouse and logistics property continues to be strong, which is being reflected in the attractive rental returns we are
negotiating," added Mc Grath.
Located within the Jurong Industrial Estate, 27 Penjuru Lane is close to Singapore's city centre and accessible by major expressways and roads such as Jalan Buroh, Penjuru Road and the AYE.
Source: Property Guru – Wed, Jul 4, 2012