damageltd

(arealestateinvestmenttrustconstitutedon13December2012underthelawsoftheRepublicofSingapore)SOILBUILDREITCALLEDUPONINSURANCEGUARANTEEFROMNKINGREDIENTSPTE.
LTD.
SBREITManagementPte.
Ltd.
,asmanagerofSoilbuildBusinessSpaceREIT("SoilbuildREIT",andthemanagerofSoilbuildREIT,the"Manager"),wishestoannouncethatDBSTrusteeLimited(initscapacityastrusteeofSoilbuildREIT)(the"Trustee")hason12September2017issuedaletterofdemandtoNKIngredientsPte.
Ltd.
(formerlyknownasNKChemicalsPteLtd)("Tenant")forarrearsamountingtoS$3,421,120.
33.
TheTrusteeholdsaninsuranceguaranteeissuedinitsfavouramountingtoS$5,110,677.
TheTrusteecalledupontheinsuranceguaranteetodayinconnectionwithnon-observanceoftheLeaseAgreementbytheTenant.
Pursuanttoclause6.
1.
1oftheleaseagreementdated15February2013betweentheTrusteeandtheTenant("LeaseAgreement"),theTenantisindefaultundertheLeaseAgreementforfailuretopayrentandanyothersumpayableundertheLeaseAgreement.
Inaccordancewithclause3.
6.
3oftheLeaseAgreement,theTrusteeisentitledtoapplythewholeorpartofthesecuritydepositamountinortowardsmakinggoodanylossordamagesustainedbytheTrusteeasaresultofthatdefaultandanyexpenseincurredbytheTrusteeinmakinggoodthelossanddamage,inanymannerasmaybeprescribedbytheTrustee.
Clause3.
6.
4oftheLeaseAgreementfurtherstatesthattheTenantmustpaytotheTrusteeanamountequaltotheamountappliedbytheTrusteeunderclause3.
6.
3asreplacementofthepartorwholeoftherelevantsecuritydepositamountapplied,withinsevendaysofdemand.
ThebalanceoftheinsuranceguaranteeofS$1,689,556.
67isequivalenttoapproximatelyfourmonthsofrent.
TheManagerdoesnotexpecttheretobeamaterialimmediatefinancialimpactonSoilbuildREIT'sdistributionperunit("DPU")forthecurrentfinancialyear.
Basedontheunauditedhalfyearended30June2017financialresultsofSoilbuildREIT,theDPUofSoilbuildREITwas2.
955cents.
Purelyforillustrativepurposes,assumingSoilbuildREIThadterminatedtheleasewiththeTenantasat1January2017,theDPUforthehalfyearended30June2017wouldbeapproximately2.
640cents.
Intheeventthereareanymaterialdevelopments,theManagerwillreleasefurtherannouncementsasnecessaryonthismatter.
ByOrderoftheBoardSBREITManagementPte.
Ltd.
(UEN/CompanyRegistrationNo.
201224644N)AsManagerofSoilbuildBusinessSpaceREITRoyTeoChiefExecutiveOfficer18September2017AboutSoilbuildBusinessSpaceREITSoilbuildREITisaSingapore-focusedrealestateinvestmenttrust("REIT")withaportfolioofbusinessparksandindustrialpropertiesusedbyindustriesengaginginmanufacturing,engineering,logistic,warehousing,electronics,marine,oil&gas,researchanddevelopmentandvalue-addedknowledge-basedactivities.
ItsportfolioofpropertiesincludesSolaris,alandmarkdevelopmentinone-north,Eightrium@ChangiBusinessPark,TuasConnection,WestParkBizCentralandBukitBatokConnection.
SoilbuildREIT'sportfoliohasanetlettableareaof3.
90millionsquarefeetandanoccupancyrateof92.
6%asat30June2017.
Formediaqueries,pleasecontact:MsDeniseNgInvestorRelationsDID:+6564154560Email:denise.
ng@soilbuild.
comWebsite:www.
soilbuildreit.
comIMPORTANTNOTICEThevalueoftheUnitsandtheincomederivedfromthemmayfallaswellasrise.
Unitsarenotobligationsof,depositsin,orguaranteedbytheManager,DBSTrusteeLimited(astrusteeofSoilbuildREIT)oranyoftheirrespectiveaffiliates.
AninvestmentintheUnitsissubjecttoinvestmentrisks,includingthepossiblelossoftheprincipalamountinvested.
InvestorshavenorighttorequestthattheManagerredeemorpurchasetheirUnitswhiletheUnitsarelisted.
ItisintendedthatUnitholdersmayonlydealintheirUnitsthroughtradingonSingaporeExchangeSecuritiesTradingLimited(the"SGX-ST").
ListingoftheUnitsontheSGX-STdoesnotguaranteealiquidmarketfortheUnits.
ThepastperformanceoftheManagerisnotindicativeofthefutureperformanceoftheManager.