- The Shugart at one-north district provides attractive NPI yield of 8.3% (7.8% post-transaction costs). The development of a six storey high-specification ramp-up logistics facility in Singapore provides attractive stabilised yield of 7.5-8.5%.
- Including the potential acquisition in Europe, the basket of 3 initiatives provides DPU accretion of 1.2-1.3%.
- - Read this at SGinvestors.io -
Acquiring Seagate’s R&D facility.
- CapitaLand Ascendas REIT (SGX:A17U) has proposed to acquire The Shugart, a high-specification R&D and business park property at 26 Ayer Rajah Crescent in the one-north district from Seagate Singapore, who will lease back the property for 10 years and has an option to extend for an additional 10 years. The lease has built-in rent escalation of 2.5% per year.
- - Read this at SGinvestors.io -
- The proposed acquisition provides attractive NPI yield of 8.3% (7.8% post-transaction costs). It is accretive to pro forma 2022 DPU by 0.11 cents or 0.7% assuming:
- funding structure of equity 60% and debt 40%, and
- REIT manager receives base fees 80% in cash and 20% in new units.
- The acquisition is expected to complete in 2Q23.
Potential acquisition in Europe.
- Read more at SGinvestors.io.
