Ascendas Real Estate Investment Trust (A-REIT) has announced that it will be investing about $97 million to enhance three properties in its portfolio.
The business space and industrial REIT made the announcement as it released results for the second quarter that ended September 30.
A-REIT posted a net property income of $83.9 million in Q2, up 3.5 percent from the previous year, an improvement that is attributed to acquisitions and the completion of development projects.
Tan Ser Ping, executive director and chief executive of A-REIT’s manager, said the manager has identified three property enhancement opportunities “to capitalise on under-utilised plot ratio or to enhance the attractiveness of the properties”.
Among the biggest projects is the $59 million redevelopment of 1 Senoko Avenue. The REIT is increasing the plot ratio of the site from 0.6 to 2.5, resulting in an additional 34,519 sq m of gross floor area. The property is set to be a “food hub” for the F&B industry when completed by the last quarter of FY2011/2012.
A-REIT is also seeking a regulatory approval for the $33.7 million improvement of 10 Toh Guan Road, including the enhancement of the property’s exterior façade and creation of more parking facilities.
The REIT will also be spending $4.3 million to build a courtyard on the upper floors of Techview at Kaki Bukit.
A-REIT expects the three projects to deliver more than 8.5 percent in weighted average yield.