DBS Group Research analysts Dale Lai and Derek Tan are maintaining their recommendation on AIMS APAC REIT (AA REIT) at “buy” with an unchanged target price of $1.40 following the REIT’s proposed acquisition of a modern ramp-up logistics facility at 7 Bulim Street on Aug 11.

See: AIMS APAC REIT to acquire property in Jurong Innovation District for $129.6 mil

The way Lai and Tan see it, while the property sits on land with a remaining tenure of only 22 years and a remaining master lease of around 3.5 years, demand and rental rates will remain resilient due to its status as one of the few modern logistics facilities in the up-and-coming Jurong Innovation District to serve the Tuas Mega Port.

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