A-REIT acquires and leases back Hyflux Innovation Centre for $191.2 mil

A-REIT acquires and leases back Hyflux Innovation Centre for $191.2 mil

WRITTEN BY THE EDGE  
THURSDAY, 26 JUNE 2014 09:08

Ascendas Funds Management (S) Limited, the manager of Ascendas Real Estate Investment Trust (A-REIT) is acquiring Hyflux Innovation Centre located at 80 Bendemeer Road for a total purchase consideration of $191.2 million.

Upon completion of the acquisition, Hyflux and Hydrochem will leaseback 50% of Gross Floor Area of 43,434 sqm for 15 years while all existing third party tenants in the property will be assigned to A-REIT. The property will have an occupancy rate of 83.9% and the vendor will provide rental support for the remaining vacant space for three years.

Hyflux Innovation Centre is located within the Kallang Industrial Estate and is within three minutes’ walk to Boon Keng MRT station along the North-East Line. The property is a 10-storey high-specifications building with a basement and surface car park. Current tenants include Hyflux, NEC, Covidien Private Ltd, American Express and Renesas Electronics Singapore Pte Ltd.

Tan Ser Ping, Executive Director and Chief Executive Officer of A-REIT Manager, said, “We are pleased to strengthen our relationship with Hyflux Ltd, with a sale-and-leaseback arrangement at Hyflux Innovation Centre. This property is a prime high-specifications development located at the fringe of the central business district. Hyflux’s commitment to lease 50% of gross floor area for 15 years will extend A-REIT’s weighted lease expiry profile to 3.96 years.”

Following the above acquisition, A-REIT’s weighted average lease term to expiry is expected to increase from 3.85 years to 3.96 years. A-REIT will own a total of 103 properties in Singapore and two business park properties in China.



- wong chee tat :)