Asset Enhancement Initiatives/Development

AIMS AMP Capital Industrial REIT is employing a strategy to unlock value within its portfolio by redeveloping assets to meet the needs of businesses in Singapore. Its team of asset managers is focused on identifying ways to tailor developments either through maximising plot ratio or creating warehouse solutions to meet complex warehousing and logistics needs.

Undergoing

8 and 10 Tuas Avenue 20 (Redevelopment)

AA REIT further unlocked value within the portfolio with the commencement of the Trust’s fourth redevelopment of 8 and 10 Tuas Avenue 20. The S$27 million redevelopment (including land cost) will transform the existing two adjoining two-storey detached industrial spaces into a versatile industrial facility with ramp and cargo lift access, making it suitable for production and warehouse usage.

Due for completion in the second half of 2017, the property’s value upon completion is estimated at S$32 million. Gross floor area will increase by around 41,614 square feet or 35 per cent, improving the plot ratio from 1.03 to the maximum of 1.4.

Before

Customised two adjoining two-storey industrial space with an under-utilised plot ratio

After

Versatile three-storey industrial facility with ramp and cargo lift access

30 and 32 Tuas West Road (Redevelopment)

AA REIT further unlocked value within the portfolio with the commencement of the Trust's third redevelopment of 30 and 32 Tuas West Road. The S$41.7 million redevelopment will transform the existing two three-storey detached industrial buildings into a five-storey ramp-up warehouse facility.

Upon completion, the asset will nearly double the gross floor area from 159,77 sqft to approximately 287,866 sqft and increase the plot ratio from 1.15 to 2.07.

Before

Two three-storey detached industrial buildings with an under-utilised plot ratio

After

Purpose built five-storey ramp- up warehouse facility increasing plot ratio. CWT Limited to take up all five storeys under Master Lease arrangement

Completed

26 Tuas Ave 7 (Asset enhancement)

AA REIT undertook customised asset enhancement initiative ("AEI") at 26 Tuas Avenue 7 for S$1.19 million. The two-storey building is a purpose built factory with mezzanine office space. After the AEI, the factory will have an additional production line and extra storage space.

By providing a customised property solution, the tenant extended the current 10 year leasing term for another five years, until 18 April 2022, with agreed stipulated rental escalations in the new lease terms.

Annual rental income will rise from current S$0.87 million to S$1.05 million at the start of new term, providing a return on investment of 10 per cent.


1 Kallang Way 2A (Asset enhancement)

AA REIT futher unlock value within the portfolio with the commencement of asset enhancements at 1 Kallang Way 2A for a modest investment of S$2.2 million.

The project will increase lettable area at the eight-storey light industrial building by 13 per cent, adding warehouse and ancillary space. The forecast annual rental income is expected to rise from S$1.07 million to S$1.39 million, providing a rental yield of 9.5 per cent.

20 Gul Way (redevelopment)

Before Construction During Construction After Construction

103 Defu Lane 10 (redevelopment)

Before Construction During Construction After Construction