Ascendas REIT said it will be developing a centre for Unilever Asia Private at an estimated development cost of S$32.3 million.
This is excluding the S$26.4 million premium for the underlying land located at Nepal Park.
In a filing to the Singapore Exchange (SGX), A-REIT said that in addition, the property – called Unilever Four Acres Singapore – will enlarge its presence in One-North.
Specifically, it said its third property within One-North will enhance its operational efficiency and economies of scales in operations.
The REIT added that the development is also in line with Singapore’s economic development direction to attract investment from value and knowledge intensive industries.
Going forward, A-REIT believes that the development of the site will provide shareholders with potentially greater returns compared to outright acquisitions of income-producing properties.
Source : Channel NewsAsia – 20 Jul 2011