CapitaLand Ascendas REIT will pay $218.2 million for Seagate’s The Shugart in one-north

Check related news: Niven Road residential shophouse listed for sale at $5.2 million

CapitaLand Ascendas REIT (CLAR) will acquire Seagate Singapore’s integrated advanced research and development (R&D) location, The Shugart, for $218.24 million. With acquisition fees, as well as other associated fees, CLAR is expected to spend a total of $232.4 million.

The purchase of the property located on 26 Ayer Rajah Crescent within one-north will broaden CLAR’s presence in the region. CLAR currently owns five properties across various clusters in 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 are geared towards the media and infocomm technologies as well as engineering and science as well as biomedical and life sciences, and new industries. When the Shugart is completed, The Shugart, CLAR’s footprint in one-north will grow to 13% to reach an AUM of $1.9 billion, spread across 2.5 million square feet of NLA.

In a pro forma manner the percentage of commercial space and life sciences properties that CLAR has in its portfolio will rise up to% -approximately $8.1 billion — of the total investment properties which have a value of $16.7 billion.

After the conclusion of the acquisition Seagate Singapore will enter into an agreement for a 10-year leaseback of the total GFA (GFA) along with an option of renewing for a further 10 years.

According CLAR CLAR the proposed acquisition is the spirit of its strategy of investing in properties which meet changing market demands arising that result from structural trends and consumer patterns like digitization and online shopping.

The Shugart constructed in the last eight years it has the six-storey podium, as well as an eight-storey tower that houses an office and cleanroom facility for operations of Seagate Singapore. As Seagate’s main R&D facility outside of the US and also having an outdoor garden, gym and multi-purpose sports hall for employees.

The acquisition is expected be completed by the 2nd quarter in 2023. When the acquisition is completed, CLAR will own 231 investment properties consisting of the following: 98 properties located in Singapore and the 36 properties in Australia and 47 properties within the US as well as 49 properties located in Europe. UK as well as Europe.