The manager of Sabana Industrial REIT has announced that GDMC — the tenant of its premises in 30 and 32 Tuas Avenue 8 — has been placed in provisional liquidation.
The premises comprise two original “E8” JTC standard factories with an adjoining four-storey factory equipped with ancillary offices with a gross floor area of 158,846 sq ft.
The REIT manager is currently taking legal advice and will take active steps to mitigate any losses arising from this development, it said in a filing. This includes taking steps to re-enter the premises, marketing the premises to prospective replacement tenants as well as offsetting the outstanding rental payments with the tenant’s security deposit at hand.
Since the commencement of the lease, the tenant has been prompt in its rental payments throughout 2023 and has met its full rental obligations up to the month of April this year.
For FY2023 ended December, the tenant accounted for about 2.4% of the REIT’s total gross rental income. The manager expects that the overall impact to the REIT will be about 2.3% of its proforma FY2023 distribution per unit (DPU).
Units in Sabana REIT closed at an unchanged 35 cents on June 11.
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