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Ascendas-Singbridge buys 33 office properties in maiden entry into US
ASCENDAS-Singbridge Group has entered the US market by acquiring a portfolio of 33 high-quality office properties with a total net lettable area of about 3.3 million square feet in three cities.
The properties in Portland, Raleigh and San Diego are built on freehold land and are centrally located near major freeways, airports and mass transit, as well as retail outlets and amenities, according to its statement on Friday morning.
Ascendas-Singbridge did not disclose the deal value.
It said the portfolio has a "high occupancy rate" and has tenants across industries like technology, internet, aerospace and biotechnology. These tenants include Nike and Oracle.
"Supported by strong cash flow from a diversified and high-quality tenant base, the portfolio is expected to generate stable returns and long-term growth," the company said in the statement.
Ascendas-Singbridge will also open a San Francisco office to grow the group's footprint in the US.
Its US move follows Ascendas Reit's first entry into Europe in August with its purchase of 12 logistics properties in the UK in August for £207.27 million (S$373.15 million). Ascendas-Singbridge Group is the sponsor and a substantial unit-holder of Ascendas Reit.
“This acquisition is in line with the group’s strategy to widen our footprint in deep and mature markets such as the US and Europe," He Jihong, chief investment officer of Ascendas-Singbridge Group, said in the statement.
"We focus on locations with favourable long-term fundamentals and will continue to seek out opportunities that will allow us to benefit from advances in science, technology and innovation in the future economy."