SG Digest: Straits Trading to buy Adelaide property; Ascott Business Trust set up

Source: Picture of Adelaide city, South Australia (Australian Broadcasting Corporation (ABC))

In a couple of real estate related development from Singapore, Straits Trading Company Limited has proposed to acquire a property in Adelaide, South Australia for A$44.30 million ($30.43 million) while Ascott Business Trust (ABT) has officially been set up following the merger of Ascott REIT (Ascott), and Ascendas Hospitality Trust (AHT).

Straits Trading to acquire Adelaide property for $30m

Singapore Exchange (SGX) Mainboard-listed Straits Trading Company Limited (STCL) is proposing to acquire a south Australian property development for A$44.30 million ($30.43 million).

The greenfield property development will be developed into a mixed-use office and warehouse facility, expected to be completed by the end of the fourth quarter of 2020.

The 37,970 sq m land parcel is located 15 km north of Adelaide CBD and will be fully developed into a 14,719 sqm mixed-use office and warehouse facility with a pre-commitment from an undisclosed blue-chip tenant on a long-term lease.

Ascott Business Trust is officially set up

Following the merger announcement of Ascott REIT (Ascott) and Ascendas Hospitality Trust (AHT) in July, the board of directors of Ascott has announced the establishment of Ascott Business Trust (Ascott BT).

Ascott BT’s main activity would be to invest in real estate or real estate-related assets which are income-producing and predominantly used for hospitality assets globally.

SGX has also given in-principle approval of the listing and quotation of up to 2.18 billion new Ascott REIT – BT (Ascott REIT, and Ascendas Hospitality Trust) stapled units which will be issued to existing unitholders as part of Ascott’s distribution scheme. In addition, up to 906 million new Ascott REIT – BT stapled units will be issued as part consideration for the merged group.