Ascendas Reit buys 25% stake in business park property for $102.91m

The property has a gross floor area of 68.835 sqm.

Ascendas Reit has acquired a 25% equity stake in the holding entity of business park property Galaxis for $102.91m, according to a press release. It was bought from MBK Real Estate Asia, a wholly-owned subsidiary of Japan-based trading company Mitsui & Co.

Ascendas Reit has funded the acquisition through debt and internal resources. This is estimated to improve their distribution per unit (DPU) by 0.013 to 0.1105 cents by year-end if this was acquired on 1 January, according to the news release. It is also projected to generate a net property income yield of 6.2% and 6.1% before and after transaction costs, respectively.

Galaxis is a business park property located at 1 & 3 Fusionopolis Place, in Singapore’s one-north precinct. It has a gross floor area of 68,835 sqm and a net lettable area (NLA) of 60,752 sqm. The remaining lease tenure of the land is around 52 years.

The property comprises a 17-storey building with business park and office space, a two-storey retail and F&B podium, a five-storey building with work lofts and a two-storey basement carpark.

The remaining 75% equity stake in AF5PL, the holding entity of Galaxis, is held by a wholly-owned subsidiary of CapitaLand, Ascendas Reit’s Sponsor.

Photo from CapitaLand website