Cambridge Industrial Trust is looking at buying 30 Teban Gardens for S$41m.
"Cambridge Industrial said 30 Teban Gardens Crescent is a high quality asset, with prominent exposure to the Ayer Rajah Expressway. The acquisition will further reduce the reliance of the trust’s income stream on any single asset or tenant."
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Eurosports Auto at 30 Teban Gardens distributes Lamborghinis. |
What I am immediately interested in is how are they going to fund the purchase and how will it impact my income received from the REIT.
The REIT has a gearing level of some 35.9% as of March 2012. Not excessive but it is not low either.
The manager has said that the acquisition will be funded through a mixture of equity fund raising and debt. In what proportion and in what form is the equity fund raising going to take? I guess we will have to wait for more details.
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