Friday, October 18, 2013
Reply from Sabana's IR
It's confirmed. The lease renewed in kallang way, the space freed up is due to MASTER LEASEE MOVING OUT, not existing space, my hypothesis is wrong.
But the NLA will not increase further. See below for reply from Sabana.
Thank you for your email. Please see our responses to your questions in brackets below. Thank you for your support for Sabana REIT and please let me know if you have more questions.
To: Grace Chen
Cc: Enquiry; Bobby Tay
Subject: Renewal of leases
Dear Bobby and Grace,
Congratulations to the successful completion of shares placement and the acquisition of 508 Chai CHee.
I refer to your 3q results release yesterday, I hope u can answer some of my questions.
1) which master lease, specifically is being renewed? And what is the rental revision terms like? [ Master lease at 3 Kallang Way 2A is being renewed at a slightly higher rate. ]
2) the 233058 sq feet of NLA free up after 25 November, is it due to tenants moving out or is it the existing vacant space of the master leases yet to be leased? [ The 233,058 sq ft comprises primarily space to be returned to Sabana REIT by existing master tenants who decide not to renew their master lease. ]
3) After 25 November, any of your former master lessee moving out, and not renewing the lease under multi-tenant terms. If they are indeed moving out, does your 233058 sq ft NLA inclusive of those? [ Please see reply to question 2 above. ]
4) There are 2 single tenant building, ( from prospectus), 2A kallang way and 8 commonwealth lane, given that either 1 will not be renewing the master lease, it means some uncomfortable possibilities. [ Please see reply to question 2 above. ]
1) they Are moving out. Back to qn3
2) there are plenty of non-utilized space and they wanted a smaller space for savings.
To prevent too much unnecessary speculation among the investing community, perhaps u can help provide some details. I believe non-renewal of anchor tenants is material information.
Their investor relation is doing a good job though.
Posted by Sillyinvestor at 5:18 AM