One of Singapore’s largest REIT, Ascendas REIT (6.7% dividend yield) continues to show their ability to rejuvenate and tweak their portfolio by purchasing 3 blocks of office buildings in Science Park Drive.
With the acquisitions, a large part of science park 1 belongs to them. Even in this challenging climate, where industrial supply is increasing, they are not afraid to make acquisitions. It seems since their huge Australia deal, they have been going non stop after being rather dormant for a while.
This acquisition, while small, lengthens the WALE from 3.7 year to 4.4 years. Indeed, it is not often we get a landlord in Singapore willing to rent to a tenant for 16.5 years.
The usual lease tenure is 3 years plus the option to extend for 3 more years.
The last time I encounter one such long lease belongs to an office …