Office park developer Ascendas is taking full control of the manager of Ascendas Real Estate Investment Trust (A-REIT).
Under a deal announced on Wednesday, Ascendas is buying over the 40 percent stake in Ascendas-MGM Funds Management Limited that is now held by Goodman Group.
Upon completion of the sale, Ascendas-MGM Funds Management Limited will become a wholly-owned subsidiary of Ascendas, and will be renamed Ascendas Funds Management (S) Limited.
In addition, Ascendas will acquire the 6.28 percent stake in A-REIT, now held by Goodman Group, for about S$158.2 million. This will give Ascendas an interest of 26.77 percent stake in A-REIT.
Ascendas said the deal would enable the company to fully extend its capabilities to benefit A-REIT.
A-REIT has 80 properties and total assets worth over S$3.4 billion as at the end of December 2007.
Source : Channel NewsAsia – 12 Mar 2008