SINGAPORE (EDGEPROP) - Ascendas Real Estate Investment Trust (Ascendas Reit) plans to acquire the remaining 75% equity stake in Ascendas Fusion 5, the holding entity for Galaxis, a business park in the one-north district. According to Ascendas Funds Management, the manager of the Reit, the purchase consideration for the proposed acquisition is about $534.4 million.
“Following the acquisition of our initial 25% interest in Galaxis in March 2020, this proposed acquisition will allow Ascendas Reit to have full ownership of the property,” says William Tay, executive director and CEO of Ascendas Funds Management.
The proposed acquisition will enlarge the Reit’s business and science park portfolio in Singapore by 18% to $4.9 billion and increase the number of properties it owns in the one-north business park district to five developments.
Galaxis was completed in 2015 and the site has a remaining land tenure of about 51 years. The property is zoned for business park use with a 30% white component. About 73% of the net lettable area comprises business park space, 17% is office space, and 7% is set aside for retail and F&B areas. The last 3% is dedicated to work lofts and a two-storey basement carpark.
Notable tenants include Sea, Canon, and Oracle, among other information and communications technologies and electronics tenants. The building enjoys a high occupancy rate of 98.6%.
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