Continue reading this on our app for a better experience

Open in App
Floating Button
Home News REITs

Ascendas REIT plans to acquire the Philips APAC Center for $104.8 million

The Edge Singapore
The Edge Singapore • 2 min read
Ascendas REIT plans to acquire the Philips APAC Center for $104.8 million
The property serves as the Dutch conglomerate’s Asean Pacific headquarters.Photo: Ascendas REIT
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Ascendas REIT plans to acquire the Philips APAC Center for $104.8 million from Philips Electronics Singapore, which will leaseback the property and remain as the anchor tenant.

The independent market valuation of the property as of May 31 2022 is $111.5 million.

The six-storey building comprises laboratory, research and development, warehouse and ancillary office space over a gross floor area of 37,975 square metres. It serves as the Dutch conglomerate’s Asean Pacific headquarters.

As at 30 June 2022, the property is leased to a total of four tenants, has an occupancy rate of 95.7% and a long WALE of 4.5 years.

According to Ascendas REIT, the first year net property income yield of the acquisition is around 7.2% and 6.8% pre-transaction costs and post-transaction costs respectively.

Ascendas REIT says the pro forma impact on the distribution per unit for FY2021 ended Dec 2021 is expected to be an improvement of 0.045 Singapore cents, or 0.29% DPU accretion, assuming the acquisition was completed on Jan 1 2021.

See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM

“Singapore remains a key market for Ascendas REIT, making up approximately 60% of total assets under management,” William Tay, CEO and executive director of the REIT manager.

“The acquisition of APAC Center is a natural addition to the portfolio, strengthening our technology and biomedical customer base and improving the overall resilience of the portfolio with its high occupancy of 95.7% and long WALE of 4.5 years,” he adds.

Upon completion of the proposed acquisition, Ascendas REIT will own 229 properties comprising 96 properties in Singapore, 36 properties in Australia, 48 properties in the United States and 49 properties in Europe.

See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM

The proposed acquisition is expected to complete in the second half of 2022, and will be funded by internal resources.

Ascendas REIT closed on Aug 4 at $3.02, up 1% for the day.

Highlights

Re test Testing QA Spotlight
1000th issue

Re test Testing QA Spotlight

Get the latest news updates in your mailbox
Never miss out on important financial news and get daily updates today
×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.