SINGAPORE (Dec 15): The managers of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana REIT) is planning the acquisition a HDB leasehold property in the commercial hub of Paya Lebar Central for $34.5 million.

The acquisition is to be funded by a combination of equity and borrowings.

Located at 107 Eunos Avenue 3, the property is a newly completed six-storey light industrial building with a basement carpark and is in close proximity to Paya Lebar and Eunos MRT stations. It has a gross floor area of 133,946 sf. The land area of the site on which the property is located is 53,601 sf. The property has a 30-year tenure starting Jan 1 2011, with a remaining tenure of 24 years.

General Cars Fleet Management, the seller of the property, is providing income support for five years. General Cars will top up the net property income if it falls short of the guaranteed net property income of about $3.1 million a year.

The vendor will also lease back 34% of the total gross floor area of the premises for five years, with an option to renew for three more years. The vendor’s lease is expected to start in the first half of 2017.

Sabana REIT last traded at 52 cents.