Brokers' take

Frasers Commercial Trust (FCOT) | Add (upgraded) June 27 close: S$1.68 Target price: S$1.64 CGS-CIMB, June 26

FCOT announced that it has entered into a lease agreement with Google Asia Pacific for the latter to take up 344,100 sq ft of space at Alexandra Technopark (ATP), for five years commencing in Q1 of CY2020.The average gross rent is comparable to recent signing rents for the property.

The lease represents a third of the current net lettable area at ATP and would increase the property's committed occupancy to 93.7 per cent. The transaction highlights the robust office leasing market, given the low new incoming supply in 2019 and 2020.