A newly completed mixed-use property in an eastern industrial park of Singapore is being acquired by industrial landlord Ascendas REIT (SGX:A17U) for a total transaction value of S$458 million.
In an official release dated 8 August, Ascendas REIT described the property, Aperia, as an integrated industrial mixed-use industrial facility located at Kallang Avenue and Lavender Street.
The property has a total gross floor area (GFA) of 86,696 sqm and consists of two business towers with a GFA of 72,290 sqm and three levels of retail and amenity space with a GFA of 14,406 sqm.
Aperia is said to have gotten the commitments of several international tenants including Intel, Roche Diagnostics, Audi, Cardinal Health, McDonald’s, and popular retailers such as Cold Storage, Tim Ho Wan and Old Town Cafe.
The acquisition is partially funded by a combination of proceeds raised from Ascendas REIT’s private placement announced in March 2013 as well as debt financing. Accordingly, the aggregate leverage ratio of A-REIT is expected to increase from 31.6% as at 30 June 2014 to 34.0% after the acquisition.
With the addition of Aperia, Ascendas REIT now owns a total of 104 properties in Singapore and two business park properties in China.
Units of Ascendas REIT closed the trading week at SGD2.29 on the Singapore Exchange.