The manager of Sabana Shari’ah Compliant Industrial REIT (Sabana REIT) has posted that it has received its temporary occupation permit (TOP) for NTP+, which is slated to open in 2Q2021.
Rental contributions are also expected to start at the same time, says Donald Han, CEO of the manager.
The lifestyle mall located at New Tech Park (NTP) is currently undergoing asset enhancement initiatives (AEI).
According to Sabana REIT’s 1Q business update, NTP+ currently has an occupancy rate of 96.7%.
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Overall, the REIT’s portfolio occupancy stood at 79.0% with a weighted average lease expiry (WALE) of 3.0 years. Excluding 1 Tuas Avenue 4 which is held for divestment, occupancy would have been 81.9%.
In his market outlook statement, Han says “global growth prospects firmed in the quarter as markets picked up, with market watchers saying the industrial sector is seeing a recovery although uncertainties remain”.
“As part of our refreshed strategy, we have continued our proactive leasing efforts to attract quality tenants in expansionary sectors such as data centre and electronics relocating from premier addresses, improving our total portfolio occupancy to 79.0% with an overall 3.1% rental reversion,” he adds.
The REIT secured a new five-year master lease for 33 and 35 Penjuru Lane, which is currently a one-year master lease.
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In the quarter, the REIT also signed 400,862 sq ft of new leases, which is equivalent to some 74.0% of the total number of new leases signed in FY2020. It also renewed 66,233 sq ft of leases with a positive rental reversion of 3.1%.
There are no master lease expiries for 2021 and 2022. Some 57.0% of the lease expiries in 2021 have been renewed or signed a new lease.
Sabana REIT, during the quarter, has obtained new Commodity Murabahah facilities amounting to $148.92 million. The REIT has also commenced negotiations with its lender on the remaining $30.0 million facility maturing end-2021.
As at March 31, the REIT’s aggregate leverage stood at 35.9%.
Units in Sabana REIT closed flat at 43.5 cents on April 22.
