A-REIT forays into Shanghai, China with the forward purchase of a Business Space Property

A-REIT forays into Shanghai, China with the forward purchase of a Business Space Property:

• Press Release

Key Points

• A-Reit will be acquiring a business space property located at No. 200 Jinsu Road,  Jinqiao Export  and  Processing Zone (“JEPZ”), Pudong New District, Shanghai, China. 
• This will be effected through the entry into a Sale and Purchase Agreement (the “SPA”)  with Hyday Holding Ltd. (the “Vendor”) (a subsidiary of Qingjian International (South Pacific) Group Development Co., Pte. Ltd. (“Qingjian”)) and Qingjian, for the acquisition of the entire issued and paid-up  share capital (the “Shares”) of  Shanghai (JQ) Investment Holdings Pte. Ltd. (a special purpose vehicle owned by  the Vendor) for a total purchase consideration of approximately RMB 587.9 million (or about S$117.6 million) (the “Proposed Acquisition”).
• The annualised pro forma financial effect of the Proposed Acquisition on the DPU for FY2009/10 is expected to be an additional 0.07 cents per unit after applicable taxes in China.

Author's Note
This will be the first acquistion by A-Reit of a property outside of Singapore since announcing its plan to expand its investment scope to cover the Asia region.. According to the manager, A-REIT’s portfolio will remain predominantly Singapore-based assets in the foreseeable future.

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