In its latest business update, Ascendas REIT (SGX: A17U) reported that an increase in the supply of industrial spaces in Singapore might put downward pressure on rental rates.
The REIT has already taken steps to mitigate that risk by announcing more overseas acquisitions that reduce its portfolio exposure in Singapore.
It announced a massive equity fund-raising to the tune of S$1.2 billion which will be spent on a string of properties in the US, Europe and Australia.
Unitholders will be excited to hear that Ascendas REIT has already completed the acquisitions of two office properties in San Francisco.
Ascendas REIT has purchased two freehold office buildings in South of Market (SoMa), San Francisco for a combined S$768 million. They are located at 510 Townsend Street and 505 Brannan Street.
The acquisitions will see the REIT’s portfolio asset value expand by 6% to S$13.7 billion.
The properties are fully leased to