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Two master leases at Singaporean buildings are renewed by AA Reit

SINGAPORE – Aims Apac Reit (AA Reit) has extended the master lease term with Cargill’s chocolate maker Aalst Chocolate near Normanton Park for an additional ten years, as well as renewed the master lease with Japanese logistics business Kintetsu World Express (KWE) for a further five years.

According to Reit’s manager on January 8, as of the end of September 2023, the two floor plans accounted for roughly 6.6% of the gross rent throughout the entire portfolio.

By virtue of the two renewals, AA Reit’s portfolio weighted average lease expiry date will be extended from 4.2 years to 4.6 years by gross rental income.

The management pointed out that both leases were subject to price escalations and were signed at a positive rental reversion over their expiration rental rate.

The lease on the facility has been extended to December 31, 2028, by KWE, one of the top 10 tenants in the Reit. The property, which is located in the Jurong Innovation District and has a gross floor size of 68,190 square meters, will undergo exterior building enhancement work by AA Reit.

The date of the lease extension with Aalst Chocolate is April 18, 2035. This property is a two-story industrial building with 5,858 square meters of leasable area, situated within Jurong Industrial Estate. Since April 19, 2007, the chocolate producer and its parent business, Cargill, have leased space from Reit, according to the management.

“AA Reit will undertake electrical upgrading works in order to support Aalst Chocolate’s business requirements,” the manager continued.

The Reit manager’s CEO, Mr. Russell Ng, cited “the sustained demand” from the sector as evidence of the Reit’s solid tenant connections.

On January 8, the counter ended the day at $1.32, down one penny.

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