02 | September | 2009 | Lush Dream Home

THE Singapore Land Authority (SLA) is set to auction a site for heavy vehicle parking at 42 Defu Lane 7. The 21,058
sq m plot will be offered on a three-year lease with an option to renew for a further two years. The specified minimum deposit is $39,000. Two site visits will be conducted at 4pm on Sept 8 and 9. Only heavy vehicles with a maximum laden weight exceeding 5 tonnes, such as buses and trailers, can park at the site. SLA has appointed Colliers International (Singapore) the auctioneer. The public auction will be held at 2.30pm on Sept 23 at Amara Hotel.

Source : Business Times – 2 Sep 2009

K-Reit deal comes with 5.2% guaranteed returns

Posted on 2 Sep 2009 | Comments Off

K-REIT Asia’s acquisition of six floors at Prudential Tower for about $106.29 million comes with income support from the seller that will translate to a guaranteed 5.2 per cent net property yield. The acquisition, which will be funded entirely by debt, will be yield accretive to K-Reit, the trust’s manager said yesterday.

The trust’s aggregate leverage will increase from 27.6 per cent to 31.1 per cent. The purchase will also boost K-Reit’s share of Prudential Tower’s strata area from about 44 per cent to 73 per cent. APF Property Investments, which sold the space to K-Reit under the latest deal, has agreed to provide K-Reit up to $5 million in rental income support over a five-year period. The FY2008 proforma net property income (NPI) attributable to the acquisition is $5.5 million,
inclusive of the income support. If the actual NPI is less than the guaranteed NPI, the seller shall pay the difference to K-Reit’s trustee. ‘The 5.2 per cent per annum property income yield is within the market norm and would provide accretive distributable income,’ K-Reit said. Continue reading →