Soilbuild REIT Completes Acquisition Of 61 & 71 Tuas Bay Drive

As per 31 October, Soilbuild REIT had acquired 61 & 71 Tuas Bay Drive properties for $55.7 million which comprises of

1. Purchase consideration of $55 million
2. Estimated transaction costs of $0.7 million

The total acquisition cost of the Property will be fully debt funded by drawing down on part of the S$100 million term loan facility that was entered into in May 2014.

In connection with the Acquisition, a novation agreement (the “Novation Agreement”) between DBS Trustee Limited, in its capacity as trustee of Soilbuild REIT (the “Trustee”), Provident Properties (I) Pte. Ltd. (the “Vendor”) and KTL Offshore Pte. Ltd. (the “Master Tenant”), has been entered into today to novate the existing master lease from the Vendor to the Trustee.

With the completion of the acquisition of the Property, Soilbuild REIT’s portfolio has been enlarged, and now comprises nine properties located across Singapore with an asset value of $1.0 billion.

Overall

With this acquisition the gearing will definitely increase however it will still be comfortable level at 35% and below (will need check this out). I will be much excited to see how the DPU will perform this quarter which might be just partial income.

Let me know what you think.