Ascendas Reit acquires 25 per cent stake in Galaxis for $72.29 million

Ascendas Reit is a wholly-owned subsidiary of CapitaLand Limited – a leading Singaporean property developer in Vietnam.

Galaxis is a premium business park property situated at the heart of Fusionopolis, one-north, Singapore’s hub for ICT, media, physical sciences, and engineering R&D. Photo: Capitaland

According to William Tay, executive director and chief executive officer of the Ascendas Funds Management Ltd., Galaxis is strategically located in the heart of the bustling Fusionopolis cluster in one-north and has direct access to the MRT station.

“The acquisition of the 25 per cent stake in Galaxis is accretive to Ascendas Reit’s distribution per unit and is transacted at an attractive net property income yield of 6.2 per cent, considering the allowable 30 per cent white component for the site. Galaxis, which also hosts highly reputed tenants, fits well with our strategy to invest in well-located and high-quality business park properties in Singapore, and will strengthen Ascendas Reit’s overall portfolio,” said Tay.

Ascendas Reit is Singapore’s first and largest listed business space and industrial real estate investment trust. It was listed on the Singapore Exchange (SGX) in November 2002. As of December 31, 2019, investment properties under management stood at S$12.8 billion ($9 million), comprising of 200 properties across the developed markets of Singapore, Australia, the United Kingdom, and the United States.

Ascendas Reit’s portfolio includes business and science parks, suburban office properties, high-specification industrial properties, light industrial properties, logistics and distribution centres, and integrated developments, amenities, and retail properties.

CapitaLand Limited is one of Asia’s largest diversified real estate groups. Headquartered and listed in Singapore, it owned and managed a global portfolio worth over S$131.9 billion ($92.63 billion) as of December 31, 2019.

CapitaLand’s portfolio spans across diverse real estate classes which includes commercial and retail; business park, industrial and logistics; integrated development, urban development; as well as lodging and residential properties.

With a presence across more than 200 cities in over 30 countries, CapitaLand focuses on Singapore and China as its core markets, while it continues to expand in markets such as India, Vietnam, Australia, Europe, and the US.