From the perspective of Lai, this transaction strengthens UIB REIT's portfolio resilience and income visibility, with portfolio WALE expected to improve from 5.8 years to 6.4 years, while Singapore exposure rises to 72% of assets under management.
Dale Lai of DBS Group Research has in his May 25 note maintained his "buy" call and $1.05 target price on UI Boustead REIT after news that it is taking a 51% stake in a $104 million build-to-suit aerospace facility in conjunction with Boustead Singapore.
The facility, to be sited within the Seletar Aerospace Park, is backed by a long master lease of 22.5 years to an unnamed global aerospace tenant and will be at an attractive 8.6% yield-on-cost.
