A-Reit completes acquisition of Shanghai business park property

Ascendas Real Estate Investment Trust (A-Reit) has completed the acquisition of a business park property in Shanghai for about $117.6 million, the trust's manager said on Monday.

Ascendas Funds Management said the acquisition of A-Reit City@Jinqiao was effected last Friday, July 12, for a total investment of about $122.3 million, including some variation works to the property at A-Reit's request.

The property has a land area of 31,952 sqm and a gross floor area of about 79,880 sqm. It is currently 3 per cent pre-committed with about 20 per cent of space under negotiation, Ascendas Funds Management said.

The seller, Hyday Holding, has provided $13.5 million as a rental guarantee to A-Reit upon completion of the acquisition.

A-Reit is expected to incur transaction costs of about $2.4 million for the acquisition, which includes $1.2 million in acquisition fees - representing 1 per cent of the purchase consideration - payable to Ascendas Funds Management.