CapitaLand Ascendas REIT (CLAR) will acquire Seagate Singapore’s advanced research and development (R&D) building, The Shugart, for $218.24 million. With acquisition fees, as well as other associated fees, CLAR is expected to pay $232.4 million.
J’Den completion date of the largest business district outside the CBD, J’Den condo is perfectly positioned to become a major economic gateway for Singapore.
The purchase of the property situated on 26 Ayer Rajah Crescent within one-north, will expand CLAR’s presence in the region. CLAR currently owns five assets located in different clusters within one-north. The the total of assets under management (AUM) of $1.7 billion and net lettable area (NLA) of 2 million square feet.
These five properties – Nexus @ one-north, Galaxis, Grab Headquarters, Neuros and Immunos, as well as Nucleos provide services to the media and infocomm technologies as well as engineering and science biomedical, life sciences as well as emerging industries. After the completion of The Shugart, CLAR’s footprint in one-north will expand in 13% to a total of $1.9 billion, spread across 2.5 million square feet of NLA.
Based on a pro forma basis the proportion of commercial space and life sciences properties that CLAR has in its portfolio will rise up to% -which is $8.1 billion of CLAR’s total investment properties which have a value of $16.7 billion.
After the closing of the acquisition Seagate Singapore will enter into an agreement to lease back for 10 years the total GFA (GFA) and the possibility of renewing for a further 10 years.
According CLAR CLAR the proposed acquisition is accordance with its plan of investing in properties that meet the changing market demands arising that result from structural trends and consumer patterns like digitization and online shopping.
The Shugart building, which was constructed in the last eight years and is comprised of the six-storey podium, as well as nine stories of towers that include data centre and a cleanroom area for the Seagate Singapore operations. It is Seagate’s principal R&D facility outside of the US It also houses an outdoor garden, gym, and multi-purpose sports hall for employees.
The acquisition is expected be completed by the 2nd quarter in 2023. After completion, CLAR will own 231 investment properties consisting of the following: 98 properties located in Singapore as well as properties in Australia, 36 properties in Australia as well as properties in Australia, 48 properties located in the US and 49 properties located in European countries, including the UK in the UK and Europe.