Ascendas REIT Buys San Francisco Offices, Raises S$1.2 Billion

News about Ascendas REIT

Ascendas REIT continues its buying spree, with two more offices acquisitions in San Francisco, USA.

Assets

The purchased freehold assets, both built in 2017, are:

  • An office building at 510 Townsend Street, currently tenanted by payment company Stripe. The property has a 27,437 m² Net Lettable Area (NLA) and comes with 7 years left on the lease.

  • An office property at 505 Brannan Street with 13,935 m² NLA, current HQ of Pinterest. The lease has 12.4 years left.

Both are fully occupied under triple net leases, with a global WALE of 9.1 years.

Financing

The S$768 million operation is being funded by debt and a S$1.2 billion equity raise operation. Existing unit holders as of the 18th of November will be able to subscribe to new shares at a price of S$2.96 per new share with 37 new units for every 1,000 existing units held.

Expectations

The manager expects the operation to be DPU accretive and to improve the portfolio profile with increased WALE (from 3.9 to 4.1 years), geographical diversification and proportion of freehold assets.

Ascendas REIT
Price3.020 SGD
NAV2.130 SGD
Yield (4 quarters)3.57%
Gearing34.9%