AIMS APAC REIT Management Limited, the manager of AIMS APAC REIT, has announced the acquisition of the Framework Building in Singapore for approximately $41.50m (S$56.65m). The property, located at 2 Aljunied Avenue 1, is strategically positioned near the Paya Lebar commercial hub and offers an attractive net property income yield of 8.1%. This acquisition is expected to enhance the distribution per unit by 2.5% for unitholders, based on full debt funding.
The Framework Building, which is 97% occupied, is anchored by Framework Building Products Pte Ltd and boasts a weighted average lease expiry of 4.1 years. The property’s flexible configurations and high power capacity make it ideal for high-spec industrial users, particularly in the healthcare, life sciences, and advanced manufacturing sectors. Its proximity to major transport links, including the Paya Lebar MRT Interchange, adds to its appeal.
Russell Ng, CEO of the Manager, stated, “The proposed acquisition of the Framework Building is a strategic addition to our portfolio and reinforces AA REIT’s position as a disciplined, long-term investor in quality industrial assets.” He highlighted the property’s potential for future asset enhancement initiatives and its contribution to the resilience and growth of AA REIT’s portfolio.
Chairman George Wang emphasised that the acquisition aligns with AA REIT’s strategy of acquiring high-quality, income-generating assets. The move is set to increase AA REIT’s industrial exposure from 20.6% to 22.7%, whilst also boosting portfolio occupancy and diversification.
This acquisition underscores AA REIT’s commitment to capturing growth opportunities in its core markets of Singapore and Australia, aiming to deliver sustainable long-term returns for its unitholders.
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