Singapore-listed Industrial Real Estate Investment Trust Ascendas REIT (SGX:A17U) is spending a total of S$42.4 million to fund the asset enhancement initiative at Techplace II. The upgrading involves enhancing the external facade of existing buildings and developing a new factory block, increasing the gross floor area of the property by approximately 24,016 square meters.

Ascendas REIT recently raised gross proceeds of S$298.5 million from a placement exercise

The amount is equivalent to 14.2 per cent of the gross proceeds of the private placement announced earlier of S$298.5 million. Besides this AEI, another $S14.6 million will be used to upgrade the property located at 9 Changi South Street 3. The rest of the proceeds are partly being used to fund the development and acquisitions of other industrial properties in Singapore and China.

To fund the forward purchase of A-REIT City at Jinqiao, China, Ascendas REIT will be making use of S$90 million from the proceeds. S$68 million and S$32.3 million will also be used to fund the development of 2 properties in Singapore, namely the Nexus @ One North and Unilever Four Acres respectively.

Ascendas REIT currently has 102 properties in Singapore and only 1 property in China. The development of A-REIT City will be its biggest inroad yet into China.