Singapore-listed Ascendas Reit has acquired two office buildings in San Francisco, US, for S$768m, marking its foray into the tech capital.
The S-REIT bought the seven-storey building at 510 Townsend Street, which has 27,437 sq.m. of net lettable area and is fully let to fintech company Stripe.
The company also acquired a six-level building at 505 Brannan Street that is fully occupied by tech platform Pinterest, with 13,935 sq.m. of net lettable area.
The two new tenants will increase Ascendas Reit’s exposure to growing technology, biomedical and digital media industry in the US from 65% to 75%.
The deal offers a net property income yield of approximately 4.9% for the first year, with triple-net leases and built-in rent escalations of 2-3% per annum.
“This acquisition allows us to plant a foothold in San Francisco, one of the most dynamic and progressive cities in the US,” said William Tay, executive director and CEO of the REIT’s manager.
Ascendas Reit issued a trading halt on Tuesday, with shares closing flat at S$3.19.
Itochu Advance Logistics strikes ¥27bn logistics deal
Shares in Itochu Advance Logistics dived more than 7% after the Japanese REIT announced plans to acquire four logistics properties across the greater Tokyo area from the Itochu Group for ¥27.3bn (~US$259m).
The acquisition comprises the i Missions Park Tokyo-Adachi property in Adachi-ku, the i Missions Park Inzai 2 in Inzai City, and the i Missions Park Miyoshi asset in Miyoshi-machi.
It also includes a 30% stake in i Missions Park Kashiwa 2, a 35,000 sq.m. warehouse in Kashiwa City, that is valued at ¥8.7bn.
The J-REIT will fund the deal with proceeds from the sale of new shares, treasury funds and borrowings.
Itochu Advance Logistics shares closed 7.18% lower at ¥135,800 on Tuesday.