Singapore’s Ascendas Reit to take control of Galaxis business park for $400m

Ascendas Real Estate Investment Trust (Ascendas Reit), Singapore’s first and largest listed commercial and industrial REIT, will acquire the remaining 75% stake in Ascendas Fusion 5 Pte Ltd, the holding entity for business park Galaxis for S$534.4 million ($400 million).

Ascendas Reit had acquired the initial 25% interest in Galaxis in March 2020.

It will finance the new acquisition through a combination of debt financing, an issue of consideration units to the vendor, and an equity fundraising, Ascendas Funds Management, the manager of Ascendas Reit, said in a statement on Tuesday.

The proposed purchase “will enlarge the business and science park portfolio in Singapore by 18% to S$4.9 billion and increase the number of properties we have in the vibrant one-north business park to five,” said William Tay, executive director and CEO of Ascendas Funds Management.

Galaxis is located in the heart of one-north, a business park in Singapore, which houses key growth sectors such as biomedical sciences, information, and communications technologies and media, science and research institutes, as well as startups.

Tenants at the property include Sea Limited, Canon, and Oracle. Galaxis had an occupancy rate of 98.6% as on March 31, 2021.

The REIT manager said Galaxis gave a rare opportunity in long land lease tenure with the remaining time of about 51 years. The full control over the asset will allow better operational and tax efficiency, it added.

Ascendas Reit’s total net lettable area will increase by 8.8% from 689,980 square metre to 750,915 square metre upon completion of the Galaxis acquisition. In total, Ascendas Reit will own 212 properties in Singapore, Australia, the United States and the United Kingdom/Europe.

Its buying spree recently includes a S$904.6 million group of data centres in Europe, two office properties in Australia, and two others in the US.

As on March 31, 2021, Ascendas Reit’s investment properties under management stood at S$15.1 billion.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.