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AIMS APAC REIT renews master leases at two Singapore properties

Felicia Tan
Felicia Tan • 2 min read
AIMS APAC REIT renews master leases at two Singapore properties
AA REIT's property at 7 Bulim Street. Photo from AA REIT's website.
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AIMS APAC REIT (AA REIT) has renewed two master leases for its properties in Singapore. The REIT, on Jan 8, announced that it has renewed its master lease with KWE-Kintetsu World Express (S) Pte Ltd at 7 Bulim Street for a new five-year term. The lease now expires on Dec 31, 2028 and was signed at a positive rental reversion over the expiring rental rate. The new lease is also subject to rental escalations. AA REIT says it will carry out exterior building improvement works at the property at Bulim Street.

In addition, the REIT has extended the master lease term with Aalst Chocolate Pte Ltd at 26 Tuas Avenue 7 for a further 10 years. The lease, which now expires on April 18, 2035, was also signed at a positive rental reversion over the expiring rental rate of the current lease term and is subject to rental escalations. To support Aalst Chocolate’s business requirements, AA REIT will carry out electrical upgrading works.

KWE-Kintetsu World Express is a wholly owned subsidiary of major Japanese freight forwarding and logistics group, Kintetsu World Express. It is one of the top 10 tenants of the REIT.

Aalst Chocolate is a leading chocolate manufacturer in Asia and a wholly-owned subsidiary of Cargill, a global food and agriculture company. It has been a long-standing tenant at 26 Tuas Avenue 7 since April 19, 2007.

As at Sept 30, 2023, the two master leases collectively contributed to around 6.6% of AA REIT’s total portfolio gross rent. The renewals will extend the REIT’s portfolio weighted average lease expiry (WALE) from 4.2 years to 4.6 years by gross rental income (GRI).

“We are delighted to extend our long-standing partnerships with KWE and Aalst Chocolate and look forward to supporting their business growth and long term occupational requirements. The sustained demand that we are seeing from industry leading and reputable companies is a testament to our proactive leasing strategy, strong tenant relationships and commitment to ongoing rejuvenation of our portfolio of quality and well-located assets,” says Russell Ng, CEO of the manager.

See also: Elite UK REIT enters into GBP135 mil facilities agreement

Units in AA REIT closed at $1.33 on Jan 5.

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