A-REIT to buy three new properties worth S$228.5m

Mainboard-listed Ascendas Real Estate Investment Trust or A-Reit said it will buy three new properties totalling S$228.5 million.

It has signed two sale and purchase agreements as well as a memorandum of understanding for the purchase of a property under development.

Under one sale and purchase agreement, A-Reit will acquire DBS Asia Hub located at Changi Business Park Crescent for S$116 million.

This is an interested party transaction, as A-Reit is buying the property from Ascendas Tuas, a wholly-owned unit of A-Reit’s controlling unitholder, Ascendas Land Singapore.

Ascendas Land Singapore holds about 19.2 per cent of A-Reit.

The property will be leased to local bank DBS.

In the other sale and purchase agreement, A-Reit will buy a multi-storey light industrial building located at 31 Joo Koon Circle for S$15 million.

The building will then be leased to Flextronics Manufacturing Singapore.

A-Reit has also signed a memorandum of understanding to purchase a property under development in Jurong for S$97.5 million.

A-Reit said it will use part of its net proceeds from its August private placement of new units, or about S$131 million, to finance the acquisitions.

A-Reit is Singapore’s first listed business space and industrial real estate investment trust.

Source : Channel NewsAsia – 17 Feb 2010

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