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Ascendas Real Estate Investment Trust (A-REIT) said it will acquire One@Changi City (pictured) from the 50:50 joint-venture between Ascendas Development and a wholly-owned subsidiary of Frasers Centrepoint for S$420 million, the REIT announced in an SGX filing Wednesday (9 December).
Located at 1 Changi Business Park Central 1, One@Changi City is a nine-storey multi-tenanted business park property that sits on 46,969 sq m land with a remaining lease tenure of 53 years. The development has gross floor area and net lettable area of 71,158 sqm and 63,106 sq m, respectively.
Following the completion of the proposed acquisition, A-REIT will have 7 properties within Changi Business Park, a total of 103 properties in Singapore, 26 properties in Australia and 2 properties in China.
Meanwhile, Swiss financial institution Credit Suisse says it is lowering its distribution per unit price (DPU) estimates for the REIT, by 1.2 to 3.9 percent following the acquisition, but is maintaining its outperform rating for A-REIT citing “potential for more growth in the near term from acquisitions. Credit Suisse’s new target price estimate for the REIT is S$2.50.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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