A-REIT: To acquire 4 properties located at 73 Science Park Drive, Cintech I, 75 Science Park Drive, Cintech II, 77 & 79 Science Park Drive, Cintech III and Cintech IV from Ascendas Land. The total consideration will be for $183.0m and the OMV of the properties was valued at $189.0m. Co expects a yield of 7.3% after all costs including the mgr's acqusition fee is included from the properties. A-REIT may make partial payment by issuing new units at indicative price $1.90 each, to Ascendas Land up to a value of $91.5m. Approval will be sought from unitholders.
DB maintains Buy with TP$2.28 and FY12E yield of 7.1%. House is positive on acquisition noting that 7.3% NPIyield looks attractive compared to prev recent acquisitions at 6.0-6.8% yield Occupancy rates range from 90.9% to 100% and increases A-REIT mkt position in the science park segment from 12-15%.
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