Ascendas Real Estate Investment Trust (A-REIT) is acquiring The Galen, a property located in Singapore Science Park II, for S$126 million.
The Galen is a six-storey multi-tenanted building, with net lettable area of 21,775 square meters.
The building has an occupancy rate of about 97.5 percent.
In a statement, A-REIT said it will be granted a land lease of 66 years for the property and expects to complete the acquisition by the end of March.
Separate to the purchase price, the trust will incur another S$1.89 million in transaction costs.
The acquisition is expected to generate a net property income yield of approximately 6.8 percent.
With the addition of the property, A-REIT said it will have 11 properties in the Science Park segment, thereby offering further opportunities to enhance operational efficiency and economy of scale.
Source : Channel NewsAsia – 16 Mar 2013