Here's proof that SPH REIT is milking tons of benefits from Paragon
Thanks to tenant loyalty.
According to DBS, SPH REIT offers investors a unique exposure to the retail and healthcare services industry in Singapore, backed by a portfolio of landmark high quality commercial assets.
"We believe that the REIT will provide a stable yield platform with growth potential fromorganic and inorganic means," DBS said.
Here's more from DBS:
Paragon, which enjoys a high degree of tenant retention, provides a strong resilient cashflow stream while Clementi Mall provides room for organic growth as it moves into its first rental reversion cycle in FY14.
The latter, which enjoys very strong pedestrian footfalls and a lower-than-industry occupancy cost, is anticipated to renew its leases positively.
Backed by a reputable and strong Sponsor. The Sponsor of SPH REIT is Singapore Press Holdings, a leading media organisation. In addition, it has more than a decade-long track record in the property sector since acquiring Paragon in 1997.
It has also provided a ROFR that includes The Seletar Mall, currently under construction, to the REIT. This has provided SPH REIT with a visible inorganic growth driver.