The manager of Sabana Industrial REIT M1GU has obtained provisional permission from the Urban Redevelopment Authority for the additions and alterations works to 1 Tuas Avenue 4 (1TA4), a key milestone for the commencement of asset enhancement initiative (AEI) at the property.
1TA4 is in close proximity to Tuas Mega Port and Tuas Medical Park. The main contractor for the project has been appointed, according to the trust’s bourse filing.
The development cost of approximately $20 million will be internally funded.
The project is targeted to obtain its Temporary Occupation Permit (TOP) by 1H2024. The manager is currently in discussions with prospective tenants which includes companies in the logistics and manufacturing trade sectors.
Designed to comprise an approximate 156,000 sq ft warehouse, production and ancillary office on an ambient basis, the project will include ample loading bays with dock levellers as well as a 25-metre voluminous ceiling height space — ideal for an automated storage and retrieval system.
1TA4 will also incorporate solar panels, which could potentially generate more than 1,000 megawatt-hours of energy per year. It will target to attain a minimum Green Mark Super Low Energy certification post AEI-completion.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
This project is the manager’s second AEI, following the completion of the NTP+ mall at the REIT’s flagship property, 151 Lorong Chuan (New Tech Park) in 1QFY2021. Post AEI-completion of New Tech Park, the REIT saw an uplift in its revenue contribution as well as portfolio valuation.
“Demand for warehouses continues to be a bright spot based on our leasing enquiries and the positive response that we are seeing. Going the route of additions and alterations will enable us to achieve a relatively shorter project timeline and at the same time, maximise the use of the existing building structure.
“The strategic location of our building in Tuas, within established industry clusters and good connectivity, represents an attractive and ideal space for prospective tenants,” says Donald Han, CEO of the manager.
Units in Sabana Industrial REIT closed 0.5 cents higher or 1.14% up on Apr 4 at 44 cents.
