The mainboard-listed Ascendas Real Estate Investment Trust (A-REIT) said it will acquire three new properties amounting to $228.5 million.
A-REIT has signed a memorandum of understanding for the acquisition of a property under development and two sale and purchase agreements.
Under one sale and purchase agreement, it will purchase DBS Asia Hub at Changi Business Park Crescent for $116 million.
This is an interested party transaction, as A-REIT is purchasing the property from Ascendas Tuas, a wholly-owned unit of Ascendas Land Singapore, the controlling unit-holder of A-REIT.
Ascendas Land Singapore owns around 19.2 percent of A-REIT.
The property will be rented out to local bank DBS.
In the other sale and purchase agreement, it will purchase a multi-storey light industrial building at 31 Joo Koon Circle for $15 million.
The industrial building will then be rented to Flextronics Manufacturing Singapore.
A memorandum of understanding was also signed by A-REIT to purchase a property under development located in Jurong for $97.5 million.
According to A-REIT, part of its net proceeds from its private placement of new units in August amounting to around $131 million, will be used to finance the acquisitions.
A-REIT is the first listed industrial and business space real estate investment trust in Singapore.