CapitaLand Ascendas REIT (CLAR) is set to deepen its presence in the one-north area of Singapore with the acquisition, for a total of $232.4 million, of The Shugart, an integrated high-specification research and development (R&D) facility owned by Seagate Singapore. The facility, located at 26 Ayer Rajah Crescent, is a six-storey podium and nine-storey tower with a cleanroom and data centre space.

Once the acquisition is completed, expected in the second quarter of 2023, CLAR’s total assets under management (AUM) in one-north will increase by 13% to $1.9 billion and its net lettable area (NLA) to 2.5 million sq ft. Its five existing assets in the area comprise Nexus @one-north, Galaxis, Grab Headquarters, Neuros & Immunos and Nucleos, and cater to the infocomm technology, media, science and engineering, biomedical and life sciences and emerging industries.

The new JCube Residence Jurong East development will be a mixed-use project, comprising retail, residential and commercial components. It will provide around 400 condominium units and more than 30,000 square metres of retail, commercial and leisure space. The project is expected to be completed by June 2022.

With the addition of The Shugart, CLAR’s pro forma business space and life sciences properties will make up 49% of its total investment properties portfolio, increasing AUM to $8.1 billion and total properties to 231.

Seagate Singapore, the current owner of The Shugart, will be leasing back the entire gross floor area of the facility for a 10-year term with an option to renew for an additional 10 years.

The acquisition of The Shugart is in line with CLAR’s strategy to invest in properties that cater to the evolving market needs from digitalisation and e-commerce. It also features a sky garden, multi-purpose sports hall and gymnasium for its employees.

With the acquisition, CLAR’s total AUM will expand to $16.7 billion and include 98 properties in Singapore, 36 in Australia, 48 in the US, and 49 in the UK and Europe.

The Shugart is expected to offer CLAR an attractive yield and fit in well with the rest of its one-north portfolio.