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DELIVERING GROWTH
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In December, we entered into a 60/40 joint venture
with Oxley Group Limited, one of the management
company sponsors, to acquire our maiden property
in the JTC Biomedical Park for S$15.0 million, on a
vacant possession basis. The JTC Biomedical Park is
a world-class manufacturing hub that hosts process
development and manufacturing operations for
major pharmaceutical, biotechnology and medical
technology companies. Following the introduction
by the Singapore Economic Development Board,
we managed to secure as our long-term tenant,
Agila Specialties Global Pte Ltd, for the next 25
years. Based on securing this tenant, the property
is now valued at S$38.0 million. This well-located,
premium investment-grade property will enhance
the quality of our portfolio, lengthen our weighted
average lease expiry profile and diversify our
tenant base.
Following the calendar year ending 2012, the
acquisitionof 15 JurongPort Roadwas completedon
30 January 2013 for S$43.0 million. The property
is strategically located within one of the prime
Jurong industrial districts and has a prominent
frontage along the Ayer Rajah Expressway.
In FY2013, we will continue to focus on strategic
acquisitions of properties which complement
CIT’s portolio.
Completion of our Development Projects
In FY2012, we completed two development projects,
43 Tuas ViewCircuit and 70 Seletar Aerospace View,
with a total GFA of approximately 176,565 sq ft,
for a total cost of approximately S$21.8 million. 70
Seletar Aerospace View, which was completed on
22November 2012, is leased toAir Transport Training
College Pte Ltd for 28.9 years.
Pro-Active Asset Management
As part of our strategy to organically grow our
portfolio, three properties underwent AEI.
•30 TohGuan Roadwhich involved the demolition
of the existing and the redevelopment of a
new two-storey warehouse was completed on
11December 2012. This enhancementmaximised
the plot ratio. The newwarehouse component is
leased to Momentum Creations Pte Ltd for fve
years commencing1January2013. Theproperty is
nowundergoing Phase II of theAEI which involve
the upgrading of the existing lifts and services to
achieve the Green Mark standard. These will be
completed by 4Q2013 and further enhance the
overall quality of the building.
•TheAEI for 4/6Clementi Loopwhich involved the
construction of a new four-storey warehousewas
completed on 9 January 2013 for approximately
S$23.3 million. The plot ratio of the property is
now maximised with a GFA of approximately
300,920 sq ft.
•88 International Road which was demolished
is being rebuilt into a three-storey warehouse
and production facility with a basement carpark.
Completion is targeted for 2Q2013 and the plot
ratio will be maximised from the current GFA of
53,360 sq ft to 155,292 sq ft. A lease has been
securedtoYenomIndustriesPteLtdfor sevenyears
with an option to renew for a further three years.
Divestment of Non-Core Properties
As part of our strategy to recycle capital, the following
properties were divested in 2012:
•7 Ubi Close in 1Q2012 for S$18.7 million.
•6 Tuas Bay Walk in 4Q2012 for S$6.5 million.
Portfolio Summary
As at 31 December 2012, CIT had a total of 49
properties with an approximate GFA of 7.8 million
sq ft, leased to 149 tenants. The portfoliowas valued
by independent valuer CBRE Pte Ltd at S$1,214
million1. NAV equated to 64.7 cents, an increase of
4.4% on the NAV of 62.0 cents a year ago.
1 This fgure includes 88 International Road which is currently undergoing development works and is valued at S$19.0 million as at 31 December 2012