CapitaLand Ascendas REIT announced the acquisition of Seagate’s Singapore headquarters, the Shugart, for S$218 million.
🕵️♂️ What happened?
- CapitaLand Ascendas REIT announced the acquisition of Seagate’s Singapore headquarters, the Shugart, for S$218 million.
Source: SGX as of 19 May 2023
🔧 What you need to know about CapitaLand Ascendas REIT's latest acquisition
#1 - Acquisition provides income stability
The Shugart is a modern specification asset located in the prime one-north cluster in Singapore, and is used mainly for R&D purposes.
Seagate will lease it back from CapitaLand Ascendas REIT for 10 years, with an option to extend it by another 10 years.
In addition, CapitaLand Ascendas REIT would receive an annual rent increase of 2.5%.
Source: CapitaLand Ascendas REIT
#2 - Acquisition will strengthen CapitaLand Ascendas REIT's portfolio
The acquisition will strengthen CapitaLand Ascendas REIT’s position in the business park segment.
Following the completion of the transaction in 2Q23, business parks will represent about 49% of the REIT’s portfolio....
