Ascendas REIT will hold an extraordinary general meeting (EGM) on 25 January at the Pan Pacific Hotel in Singapore to seek unitholders approval for its planned acquisition of 12, 14, and 16 Science Park Drive.
The Singapore-listed industrial REIT first announced in December 2016 that it was acquiring the properties from affiliated company Ascendas Land for SGD420 million (USD292 million).
Two of the buildings are currently leased to Singapore’s national defence research & development organisation, while the third building is leased to the Southeast Asian regional headquarters of DNV GL Singapore Pte Ltd.
Also sought at the EGM is an approval to issue consideration units to Ascendas Land to possibly fulfill part of the acquisition costs of SGD100 million.
Upon acquisition of the properties, Ascendas REIT’s portfolio weighted average lease expiry (WALE) is expected to improve from 3.7 years to 4.4 years.
Units of Ascendas REIT finished the trading day about 1.6% higher from its previous close on the Singapore Exchange to end at SGD2.42.