Sabana Reit to acquire industrial building for S$14.8m

By CARINE LEE


Sabana Shari'ah Compliant Reit on Monday announced that it had on Nov 25, entered into a sale and purchase agreement for the proposed acquisition of a three-storey general industrial building located at Woodlands Loop.

The 77,544 sq ft property, which Sabana Reit will purchase at S$14.8 million, is a JTC leasehold estate of 30 + 30 years tenure commencing from September 16, 1994, with a remaining tenure of approximately 43 years. Sabana Reit has paid a cash deposit of S$148,000 into an escrow account.

The proposed acquisition, to be financed by debt, is part of the Reit's investment strategy and provides improved asset diversification to benefit unitholders.

Upon acquisition, Sabana Reit will enter into a lease agreement with the existing tenant for a term of three years.

The seller, Winstant & Co Pte Ltd, has agreed to provide rental income support, subject to an aggregate maximum sum of S$958,058, for three years.

Sabana REIT reports on-forecast Net Property Income and Distributable Income for 3Q2011

Distribution Per Unit (“DPU”) of 2.14 cents and annualised DPU of 8.49 cents for 3Q2011.


On track to deliver annualised DPU of 8.63 cents for FY2011

• Achieved S$50.1 million gain in annual revaluation of its IPO portfolio

• Obtained investment grade credit rating from Standard & Poor’s

• Announced acquisitions of four yield-accretive properties worth S$132.3 million - portfolio size to cross S$1.0 billion mark upon legal completion


By ANGELA TAN


Sabana Real Estate Investment Management Pte Ltd, the manager of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust, reported on Wednesday a distribution per unit (DPU) of 2.14 cents for the third quarter ended September 30, 2011.

The DPU of 2.14 cents is in line with its forecast.

Distributable income was at S$13.6 million.

'With our 3Q2011 DPU in line with our forecast, our cumulative DPU performance is on track to achieve our Forecast3 DPU of 8.63 Singapore cents for the financial year ending 31 December 2011,' Kevin Xayaraj, CEO and executive director of the manager said.

On September 30, 2011, the value of Sabana Reit's portfolio had appreciated by S$50.1 million from S$851.2 million a year ago. This equates to 5.9 per cent increase in property values in the one-year period.

Sabana Reit to buy 21 Joo Koon Crescent for about $20.3m

By KALPANA RASHIWALA


Sabana Shari'ah Compliant Industrial Real Estate Investment Trust is proposing to buy 21 Joo Koon Crescent, a three-storey factory building with ancillary office, for $20.274 million from AVA Global.

Under the sale and leaseback deal, the seller will upon completion of the sale, take a master lease of the entire premises for a four-year term on a triple net basis. Sabana Reit's manager intends to fund the acquisition by debt.

This acquisition, along with the proposed acquisitions of 39 Ubi Road 1, 3A Joo Koon Circle and 2 Toh Tuck Link, announced earlier will see the Reit's aggregate leverage (gross borrowings divided by total deposited property value) rise to 35 per cent from 25.1 per cent at June 30, 2011.

21 Joo Koon Crescent is a JTC leasehold estate of 30+30 years tenure starting from Feb 16, 1994, with a remaining tenure of about 43 years. The proposed transaction is subject to approval from JTC, among other conditions.

Sabana Reit to acquire 2 properties for S$80m

By CARINE LEE


Sabana Real Estate Investment Management Pte Ltd announced on Monday that Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) has entered into two sale and purchase agreements to acquire two properties to diversify its income stream.

In the first acquisition, Sabana Reit will purchase a 217,580 sqft property along Joo Koon Circle from Ringford Pte Ltd for S$40.2 million. Comprising of a two-storey building with mezzanine floor and a three-storey factory building, the property is a JTC leasehold estate with a remaining tenure of 36.3 years.

The second property, also a JTC leasehold estate with 45.3 years remaining on the lease, carries a purchase consideration of S$39.8 million from Winfred Pte Ltd, and is a six-storey warehouse along Toh Tuck Link occupying 180,735 sqft.

Both properties are being sold on a sale and lease basis wherein Sabana Reit will upon completion of the acquisition, take master lease of the entire premises for a term of three years on a triple net basis.

Sabana Reit has paid a 1 per cent deposit for each property and the acquisitions, completely funded by debt, are expected to be completed by the fourth quarter of 2011