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Ascendas Real Estate Investment Trust (A-REIT) on Monday announced the acquisition of the six-storey building at 50 Science Park, The Kendall, for S$112.0 million from Ascendas Group’s wholly-ownded subsidiary Singapore Science Park.
This is A-REIT’s 27th acquisition from its sponsor Ascendas Group, since its public listing in 2002. This brings the REIT’s total number of owned properties to 105 in Singapore.
Sited on a land are of 10,095 sq m with a remaining lease tenure of 64 years, the multi-tenanted building The Kendall has a gross floor area of 20,190 sq m and a net lettable area of 16,824 sq m. It has an occupancy rate of about 93 percent.
“The Kendall is a 5 year old building catering to Research & Development and related companies, whose operations remain an important driver of innovation and economic growth in Singapore. This acquisition enhances our portfolio with another high quality science park property which will support the exclusive community of researchers, engineers and support staff in the Singapore Science Park,” said Tan Ser Ping, Executive Director and CEO at the REIT manager, Ascendas Funds Management.
According to the statement, A-REIT is expected to incur estimated transaction costs of about S$1.7 million, which includes S$1.1 million – equal to 1% of the purchase consideration of S$112.0 million – to Ascendas Funds Management. “As the Acquisition constitutes an interested party transaction, the acquisition fee will be paid in the form of Units, which shall not be sold within one year from the date of issuance.”
Image: The Kendall. (Source: Ascendas)
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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