Maybank is maintaining its “buy” call on AIMS AMP REIT (AAREIT) as “there is no reason” for the REIT to trade at a discount of -1 standard deviation, given its competent leasing and active unlocking of latent potential.
There is also the redevelopment of 8 & 10 Tuas means it will 759,000 sf more value to unlock.
AAREIT recently announced the redevelopment of 8 & 10 Tuas, which had previously been damaged by fire.
As the master lease expires mid 2016, the opportunity was taken to enlarge the gross floor area to 159k sf from 117k sf.
The property was also repositioned into a ramp-up with high ceilings and cargo lift access as well.
Located near the Tuas megaport, and Tuas West MRT, the new property is suitable for both warehousing and production.
Estimated cash outlay after insurance claims for loss of income and reinstatement is likely to be $17-20 million, which works out to be upwards of 8.7% yield on cost.
Gearing will remain low, below 34%.
The property will cease operations mid-2016 and is expected to be ready 2H17.
AAREIT opened at $1.36.
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There is also the redevelopment of 8 & 10 Tuas means it will 759,000 sf more value to unlock.
AAREIT recently announced the redevelopment of 8 & 10 Tuas, which had previously been damaged by fire.
As the master lease expires mid 2016, the opportunity was taken to enlarge the gross floor area to 159k sf from 117k sf.
The property was also repositioned into a ramp-up with high ceilings and cargo lift access as well.
Located near the Tuas megaport, and Tuas West MRT, the new property is suitable for both warehousing and production.
Estimated cash outlay after insurance claims for loss of income and reinstatement is likely to be $17-20 million, which works out to be upwards of 8.7% yield on cost.
Gearing will remain low, below 34%.
The property will cease operations mid-2016 and is expected to be ready 2H17.
AAREIT opened at $1.36.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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