SINGAPORE - Ascendas Reit is set to acquire DSO National Laboratories buildings and DNV GL Technology Centre, located at 12, 14 & 16 Science Park Drive for S$420.0 million from Ascendas Land, the company said on Monday.

The property comprises three built-to-suit Science Park buildings under a single land title. Two of the buildings are leased to DSO National Laboratories, Singapore's national defence research & development organisation.

The third building is leased to DNV GL Singapore, a Norwegian risk management company, for its South East Asia regional headquarters.

The leases have a lease expiry of 16.5 years and built-in rental escalation of 2.2 per cent to 2.5 per cent per annum.

The purchase is subject to unitholders approval.

"This acquisition will extend our market leadership in the overall business & science park space. The long lease expiries and built-in rental escalations will also reinforce the stability and predictability to Ascendas Reit's earnings," said Mr Chia Nam Toon, executive director and chief executive officer of Ascendas Fund Management, the manager of the Reit.

Ascendas, the holding company of Ascendas Land, is a controlling unitholder of Ascendas Reit and a controlling stakeholder in Ascendas Funds management.