Singapore-listed industrial REIT, Ascendas REIT (SGX:A17U), announced on 16 February that it has obtained unitholders approval to acquire the property located at 1 Changi Business Park Central 1 for SGD420 million.

The property, more commonly known as One@Changi City, is a 9-storey business park building with a net lettable area (NLA) of 63,106 square metres. The uniholders’ approval was obtained in an EGM also held on 16 February with a 99.69% mandate.

One@Changi City is located next to the Expo MRT station and currently has 53 years remaining on its land tenure.

Also obtained in the EGM is the approval to issue units in Ascendas REIT at an issue price of SGD2.223 per unit as partial consideration for the proposed acquisition of the One@Changi City. This resolution was approved with a 99.67% mandate.

Approximately SGD210.0 million of the acquisition consideration is proposed to be paid in the form of the new units.

“The issuance of consideration units will enable Ascendas REIT to maintain a healthy balance sheet, and further align the interest of its sponsor, Ascendas Group, with that of Ascendas REIT and its unitholders”, said the REIT in its announcement on 9 December.

Units of Ascendas REIT finished 0.8% lower from its previous close on the Singapore Exchange to end SGD2.38.