Ascendas Reit takes 25% stake in Galaxis for S$102.9m

ASCENDAS Real Estate Investment Trust (Reit) on Tuesday said it has acquired a 25 per cent equity stake in business park Galaxis for S$102.9 million.

As trustee of Ascendas Reit, HSBC Institutional Trust Services (Singapore) entered into a share-purchase agreement with vendor MBK Real Estate Asia for the purchase of the equity stake.

Situated in Singapore's one-north precinct, Galaxis is expected to generate a net property income yield of approximately 6.2 per cent and 6.1 per cent pre-transaction costs and post-transaction costs respectively. The transaction cost amounts to about S$2.99 million, including  stamp duty professional advisory fees and acquisition fees.

William Tay, executive director and chief executive officer of Ascendas Funds Management, said: "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.

He added that Galaxis fits well with Ascendas' strategy to invest in well-located, high-quality business park properties in Singapore and will strengthen Ascendas Reit's overall portfolio, he added.

A 17-storey building with business park, office space, retail and F&B space, work lofts and a basement carpark, Galaxis has a gross floor area of 68,835 square metres (sq m) and a net lettable area of 60,752 sq m. The remaining lease tenure of the land is around 52 years. 

Completed in 2015, the building is 99.6 per cent occupied by tenants such as Canon, Oracle, and Sea (formerly Garena). 

Units in Ascendas Reit closed at S$2.83 on Tuesday, up 4.43 per cent or 12 Singapore cents.

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