Key Points
- A-REIT will be expanding its investment scope to cover the Asia region.
- Currently, the Manager is actively exploring investment opportunities in China and has set up a representative office in Shanghai, China to enhance the Manager’s visibility in the various business space sub-segments and micro property markets.
- A-REIT’s portfolio will remain predominantly Singapore-based assets in the foreseeable future.
To date, all the properties of A-Reit are located in Singapore. It is also the only S-Reit to date to have undertaken development projects. The scope of the development projects are also in Singapore, subject to a cap of 10% of its total asset value by MAS regulation. The positive point about the expansion of its investment scope will be more investment opportunities will be opened up, as there may be very limited opportunities left in Singapore. Its sponsor, Ascendas Pte Ltd, has a real estate portfolio that includes science, business and industrial parks in countries such as India, China, South Korea, Vietnam, Malaysia and the Philippines. These can be potential targets for injection into A-REIT in the future. Of course the move also subject the Reit to other types of risks, currency risk being an example.
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