Ascendas Real Estate Investment Trust acquired Galaxis, a business park in one-north that has a net lettable area (NLA) of 60,935 sq m, for $534.4 million. Source: CapitaLand
Ascendas Real Estate Investment Trust (Ascendas Reit) is acquiring the remaining 75% stake in Ascendas Fusion 5 Pte Ltd, the holding entity for Galaxis, a business park within one-north, for $534.4 million.
Including the $5.4 million acquisition fee, stamp duty, professional and other fees, the total acquisition cost stands at around $543.8 million, revealed Ascendas Reit’s manager in an SGX filing on Tuesday (4 May).
The manager intends to fund the acquisition through a combination of debt financing, an issue of consideration units to the vendor, and proceeds of an equity fundraising.
William Tay, Executive Director and CEO of Ascendas Reit’s manager, said the proposed acquisition will “enlarge the business and science park portfolio in Singapore by 18% to $4.9 billion and increase the number of properties we have in the vibrant one-north business park to five”.
Galaxis is located in the heart of one-north, a business park in Singapore that houses key growth sectors like biomedical sciences, start-ups, information and communications technologies and media, and science and research institutes.
It has a net lettable area (NLA) of 60,935 sq m, comprising 44,556 sq m of business park space, 10,305 sq m of office space, 4,106 sq m of retail and food and beverage space, 1,968 sq m of work lofts, as well as a two-storey basement car park.
It has a high occupancy rate of 98.6% as at 31 March 2021, with tenants including Sea (formerly Garena), Canon and Oracle.
Nestled directly above one-north MRT station, Galaxis enjoys a remaining long land lease tenure of around 51 years, providing Ascendas Reit “full control over the property allowing for better operational and tax efficiency”.
Upon completion of the acquisition, Ascendas Reit’s total NLA will increase by 8.8% to 750,915 sq m, from 689,980 sq m previously.
The completion of the acquisition will also see Ascendas Reit own 212 properties “comprising 96 properties in Singapore, 37 properties in Australia, 30 properties in the United States and 49 properties in the United Kingdom/Europe”.
Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: email@example.com