Ascendas-Singbridge Group has entered the United States market by acquiring a portfolio of 33 high-quality office properties with a total net lettable area of about 3.3 million sq ft in three cities. The acquisition strengthens the group's international presence and diversifies its portfolio geographically.
The properties in Portland, Raleigh and San Diego are built on freehold land and are centrally located near major freeways, airports and mass transit, as well as retail outlets and amenities, said its statement yesterday.
Ascendas-Singbridge did not disclose the deal value. It said the portfolio has a "high occupancy rate" and has tenants across industries like technology, the Internet, aerospace and biotechnology. These tenants include Nike and Oracle.
"Supported by strong cash flow from a diversified and high-quality tenant base, the portfolio is expected to generate stable returns and long-term growth," the company said.
Ascendas-Singbridge will also open a San Francisco office to grow the group's footprint in the US.
Its US move follows Ascendas Real Estate Investment Trust's (Reit) first entry into Europe last month with its purchase of 12 logistics properties in the United Kingdom for £207.27 million (S$370 million). Ascendas-Singbridge Group is the sponsor and a substantial unit holder of Ascendas Reit.
"This acquisition is in line with the group's strategy to widen our footprint in deep and mature markets such as the US and Europe," said Ms He Jihong, chief investment officer of Ascendas-Singbridge Group.
WIDENING GROUP'S FOOTPRINT
This acquisition is in line with the group's strategy to widen our footprint in deep and mature markets such as the US and Europe.
MS HE JIHONG, chief investment officer of Ascendas-Singbridge Group.
"Strategically located in concentrated clusters across three high-growth and technology-centric submarkets, the portfolio provides significant scale to tap key growth drivers in the US economy."
The group will "focus on locations with favourable long-term fundamentals and will continue to seek out opportunities that will allow us to benefit from advances in science, technology and innovation in the future economy", said Ms He.