Singapore-listed industrial REIT Ascendas (SGX:A17U) announced on 30 March that it has completed the acquisition of The Kendall at 50 Science Park Road.
The 6-storey multi-tenanted building was acquired for SGD112.0 million from Singapore Science Park Ltd, a wholly-owned subsidiary of the sponsor of Ascendas REIT, Ascendas Group. The Kendall is the 27th property that Ascendas REIT has acquired from its sponsor since its IPO in 2002.
The Kendall is sited on a land area of 10,095 sqm with remaining land lease tenure of 64 years. It has a gross floor area and net lettable area of 20,190 sqm and 16,824 sqm respectively. Current occupancy rate is said to be at approximately 93.2%.
Ascendas REIT has described the property as a five-year old building which caters to R&D companies. “This acquisition enhances our portfolio with another high quality science park property which will support the exclusive community of researchers, engineers and support staff in the Singapore Science Park, said Tan Ser Ping, Executive Director and CEO of Ascendas REIT’s manager.
The Kendall is expected to generate a net property income yield of approximately 6.8% in the first year. The annualised pro forma financial effects of the acquisition on the distribution per unit would be approximately 0.063 cents per unit for the financial year ended 31 March 2014.
With this acquisition, Ascendas REIT now owns a total of 105 properties in Singapore and two business park properties in China. Units of the REIT are currently listed on the Singapore Exchange at SGD2.56.