Company Briefs: Ascendas Reit

Ascendas Reit

The manager for Ascendas Real Estate Investment Trust (Reit) has agreed to sell a property at Genting Lane to Axxel Marketing for $16.68 million.

This is 66.8 per cent higher than the original purchase price of $10 million.

The property was valued at $15.8 million as at March 31 this year, Reit manager Ascendas Funds Management said.

"The proceeds may be recycled to fund committed investments, repay existing indebtedness, extend loans to subsidiaries, and/or fund general corporate and working capital needs," the manager said.

The transaction is expected to be completed within the first quarter of next year.


Engineering services provider Acromec has secured two contracts worth $6.6 million.

The first contract is for the fitting-out of a pharmaceutical and speciality chemicals company's research laboratory, which houses the company's research and development hub.

Acromec expects the project to begin in the first quarter of next year and complete by the third quarter.

The second contract is for an extensive upgrade of the air-conditioning mechanical ventilation and air-handling unit systems of a research laboratory for a customer in the life sciences sector.

The project will begin in the second quarter of the 2018 financial year, and is expected to finish by fourth-quarter 2018.

First Reit

First Reit has teamed up with Lippo Malls Indonesia Retail (LMIR) Trust to acquire jointly an integrated development in Yogyakarta, Indonesia, from PT Lippo Karawaci, which sponsors both the Reits.

The property comprises a hospital component known as Siloam Hospitals Yogyakarta and a retail mall component known as Lippo Plaza Jogja.

The purchase price for the hospital is $27 million, which will be borne by First Reit.

It represents a discount of 1 per cent to $27.3 million, the average of two independent valuations.

The transaction is subject to the approval of the respectively unit holders First Reit and LMIR Trust.

A version of this article appeared in the print edition of The Straits Times on December 23, 2017, with the headline 'Company Briefs'. Print Edition | Subscribe