Ascendas Reit to develop, manage Grab's HQ

Ascendas Reit will be developing and managing Grab's new $181.2 million headquarters located in the one-north business park, the real estate investment trust's manager said yesterday.

The building will house all of Grab's Singapore employees, consolidating its current offices and creating the first dedicated physical facility for the company. Grab's largest R&D centre will also be based there.

"The long lease commitment of 11 years by Grab will provide Ascendas Reit with a stable income stream. This build-to-suit development takes our business and science park investments to $3.8 billion and accounts for 34 per cent of our total portfolio value of $11.3 billion," said Mr William Tay, chief executive and executive director of the Reit's manager.

Ascendas Reit yesterday reported a 0.7 per cent increase in distribution per unit (DPU) to 3.998 cents for the third quarter that ended on Dec 31 last year, from 3.970 cents a year ago.

It noted that the DPU takes into account an enlarged number of units in issue.

Net property income rose 6.6 per cent to $168 million, mainly due to lower property tax expenses.

Gross revenue increased 4.2 per cent to $226.4 million.

This was due to newly acquired properties in Britain and Australia, and a redeveloped property in Singapore.

The counter closed four cents down at $2.72 yesterday before the results were announced.

A version of this article appeared in the print edition of The Straits Times on January 31, 2019, with the headline 'Ascendas Reit to develop, manage Grab's HQ'. Subscribe