SINGAPORE (EDGEPROP) - CapitaLand Ascendas REIT (CLAR) will be acquiring Seagate Singapore’s integrated high-specification research and development (R&D) facility, The Shugart, for $218.24 million. Including acquisition fees and other related fees, CLAR is expected to fork out a total of $232.4 million.

The acquisition of the property, which is located at 26 Ayer Rajah Crescent in one-north, will deepen CLAR’s footprint in the area. CLAR currently has five assets in various clusters within one-north with total assets under management (AUM) of $1.7 billion and net lettable area (NLA) of 2 million sq ft.

The five assets — Nexus @one-north, Galaxis, Grab Headquarters, Neuros & Immunos and Nucleos — cater to the infocomm technology, media, science and engineering, biomedical and life sciences and emerging industries. Upon the completion of The Shugart, CLAR’s footprint in one-north will increase by 13% to an AUM of $1.9 billion over 2.5 million sq ft of NLA.

On a pro forma basis, the proportion of business space and life sciences properties in CLAR’s portfolio will increase to 49% — or $8.1 billion — of CLAR’s total investment properties that are valued at $16.7 billion.

Upon the completion of the acquisition, Seagate Singapore will enter into a 10-year leaseback of the property’s entire gross floor area (GFA) with the option to renew for an additional 10 years.

According to CLAR, the proposed acquisition is in line with its strategy to invest in properties that cater to the evolving market requirements from structural trends and consumption patterns such as digitalisation and e-commerce.

The Shugart, which was built around eight years ago, comprises a six-storey podium and a nine-storey tower with a cleanroom and data centre space for Seagate Singapore’s operations. Serving as Seagate’s primary R&D location outside the US, it also has a sky garden, multi-purpose sports hall and gymnasium for its employees.

The acquisition is expected to be completed in the second quarter of 2023. Upon its completion, CLAR will own 231 investment properties comprising 98 properties in Singapore, 36 properties in Australia, 48 properties in the US, and 49 properties in the UK and Europe.

Check out the latest listings near The Shugart, Nexus @one-north, Ayer Rajah Crescent, Galaxis