A-REIT to acquire properties totaling S$228.5mln

DBS Asia Hub, 31 Joo Koon Circle and a property under development aimed boosting company’s portfolio.

Ascendas Funds Management (S) Limited, the manager of Ascendas Real Estate Investment Trust (A-REIT) announced that A-REIT has signed separate conditional Sale and Purchase agreements (S&P Agreements) to acquire two properties for a total purchase consideration of S$131.0 million and a Memorandum of Understanding (MOU) for the purchase of a property under development in Jurong for S$97.5m. These transactions are:

• S&P Agreement to acquire DBS Asia Hub at 2 Changi Business Park Crescent in an Interested Party Transaction (“IPT”) for S$116.0 million
• S&P Agreement to acquire 31 Joo Koon Circle along Jalan Ahmad Ibrahim, near the intersection of Pan Island Expressway and Ayer Rajah Expressway for S$15.0 million.
• MOU for the purchase of a property under development in Jurong for S$97.5 million. This property will only be acquired upon its completion which is expected to be in 2011/2012.

Mr Tan Ser Ping, Chief Executive Officer of the Manager said, “We are pleased to announce these two acquisitions which demonstrate the Manager’s focus on enhancing its portfolio through disciplined investments.”

Tan further said that the properties “are well located and are easily accessible via major expressways with prominent frontage and good building specifications. In addition, they enjoy full occupancy by established tenants which provide a stable stream of income.”

The annualised pro forma financial effect of the Acquisitions on the DPU for the financial year ended 31 March 2009 would be an additional 0.054 cents per unit, he added.