The managers of Viva Industrial Trust (VIT) announced on Oct 9 that they have declined an offer to purchase an Ang Mo Kio property at $300 million from Ho Lee Group.

Located along Ang Mo Kio Avenue 5, the property comprises a seven-storey production block and a five-storey office block with a total gross floor area of 1.07 million sq ft. Completed in 1997, the property has a land tenure of 32+30 years from January 1995.

One reason the managers of VIT declined to acquire the property was that a major equity fund raising exercise would be required to partially finance the purchase, in order for Viva Industrial Real Estate Investment Trust to maintain its gearing ratio at the current level.