A-REIT – BT

Ascendas Reit looks for assets beyond S’pore

ASCENDAS Real Estate Investment Trust (A-Reit), which at present owns industrial properties only in Singapore, is looking to acquire assets in the rest of Asia.

Its manager has set up a representative office in Shanghai, China, and is also ‘actively exploring’ investment opportunities in the mainland. Deals may materialise in the next year or so.

A-Reit announced its widened investment scope in a statement yesterday after the stock market closed. It will follow its customers to serve their real estate needs in Asia, it said.

It added that a geographically diversified portfolio will give unit-holders ‘an opportunity to ride on growth in other Asian markets’ and allow them to access real estate markets which they ‘could not access efficiently on their own’.

BT understands that Malaysia and Japan are other countries that may be of interest to A-Reit.

As at Sept 30, A-Reit had 92 properties in Singapore worth around $4.8 billion. They include business and science parks, hi-tech industrial properties, logistics and distribution centres and warehouse retail facilities.

A-Reit said its investment focus in Asia will remain on such properties, and that its manager ‘will persist in its disciplined evaluation of all potential investments’.

It added that its portfolio will continue to be dominated by Singapore-based assets ‘in the foreseeable future’.

An analyst who declined to be named said overseas expansion is a ‘natural progression’ for A-Reit. It has grown to a considerable size in Singapore and its sponsor Ascendas also has properties abroad.

In China, Ascendas has developed Dalian Ascendas IT Park, Singapore- Hangzhou Science & Technology Park and other industrial properties.

The analyst pointed out, however, that Singapore-focused Reits tend to enjoy a premium on the stock market, and A-Reit could lose its premium as it would face more risks doing business overseas, including exchange rate volatility and possible political instability.

A-Reit gained three cents yesterday to close at $2.10.