CapitaLand Ascendas REIT (CLAR) is set to expand their footprint in the one-north area of Singapore with the purchase of The Shugart, an integrated research and development (R&D) facility. The total cost of the acquisition is expected to be $232.4 million, including fees and other related expenses. The Shugart currently houses Seagate Singapore’s operations, serving as their primary R&D location outside the United States.
The building is six stories tall and includes a nine-story tower with cleanroom and data centre space, a sky garden, and a multi-purpose sports hall with a gymnasium for its employees. Once the acquisition is complete, CLAR’s footprint in one-north will increase to 2.5 million square feet over an assets under management (AUM) of $1.9 billion.
An additional benefit to CLAR is that Seagate Singapore will enter into a 10-year leaseback of the entire space upon completion, with the option to renew for an additional 10 years. CLAR’s total investment properties, currently valued at $16.7 billion, will increase to a post-acquisition 49%, or $8.1 billion in business space and life sciences properties.
Situated near J’Den Former JCube1, the white site is slated to be part of an integrated leisure precinct neighboured by Fusionopolis Two and South Beach. “The site is set to be a key part of a precinct with vibrant lifestyle offerings and other leisure amenities. This draws from the other nearby developments such as One-North,” said Eugene Lim, ERA Realty Network division director.
The integration of the white site with adjacent developments will bring new life to the western precinct of Singapore, and it is set to be a game-changer for the lifestyle scene. The government land sales will contribute to increasing public housing supply in the western part of Singapore in the medium to long-term.
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Keyword: Leisure
The proposed acquisition is in line with CLAR’s strategy to invest in properties which cater to the changing needs of digitalisation and e-commerce, among other trends.
If the acquisition is completed in the second quarter of 2023 as planned, CLAR will own 231 investment properties, including 98 in Singapore, 36 in Australia, 48 in the US, and 49 in the UK and Europe.
