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Cost Effcient Option for Larger Users
A-REIT is the frst REIT in Singapore to undertake development
on its own balance sheet. To-date, it has completed 10
developments, achieving a net revaluation gain of about
S$273.5 million or about 36.7% over development cost.
Leveraging on our development capabilities and expertise,
A-REIT has completed a built-to-suit development for FedEx
Singapore and embarked on another two developments during
the fnancial year. These developments are fully owned by
A-REIT.
1. Completed Development: FedEx Singapore Regional
Hub at 90 Alps Avenue
Located in the eastern part of Singapore and in close
proximity to the Airport Logistics Park of Singapore,
the development is a part 1-storey, part 2-storey air
cargo express logistics facility. The Manager completed
the development in January 2012 and achieved a net
revaluation gain of about 28.0% over its development cost
of S$37.9 million. The facility has been pre-committed by
FedEx Singapore for a period of 10 years with annual rental
escalation and an option to renew for another two terms of
fve years each.
2. Development of business space at Fusionopolis
To further enhance A-REIT’s varied space propositions
and increase our presence in the one-north region, A-REIT
tendered and was awarded a land parcel at Fusionopolis
(one of the three hubs in the one-north region), for
S$110.0 million in June 2011. The site is currently under
development into a suburban business space facility
comprising 60% business park space and 40% offce space
with a total gross foor area of about 25,510 sqm designed
to cater to tenants in the Infocomm Technology (“ICT”)
and media industries as well as research and development
activities in the Physical Sciences and Engineering sectors.
Upon completion expected in 3Q 2013, this development
will be A-REIT’s third property in the one-north region.
3. Development in progress: Unilever Four Acres
Singapore
The Manager embarked on the development of Unilever
Four Acres Singapore in July 2011, a global leadership
development centre at Nepal Hill, within the one-north
region at an estimated development cost of S$32.3 million.
This development will be the Unilever’s second in the world
and frst in Asia and is expected to train up to 900 people a
year. Upon completion expected in 1Q 2013, the facility will
have a total gross foor area of about 9,180 sqm comprising
a three-storey training block, a one-storey business and
recreational centre and 10 black-and-white conservation
bungalows.
Maximising returns
Entering into A-REIT’s 10th year of listing, we continue to
pursue ways to rejuvenate A-REIT’s existing portfolio to further
enhance the marketability and/or maximise the plot ratio to
capitalise on the full potential of A-REIT’s properties when the
opportunity arises. During the fnancial year, we have embarked
on the following asset enhancement initiatives:
MANAGER’S REPORT
Development in progress Artist impression
Artist impression of Fusionopolis development
ASCENDAS REAL ESTATE INVESTMENT TRUST
ANNUAL REPORT FY11/12
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