The Manager initiated three new asset enhancement initiatives
with an estimated value of S$37.7 million during the year. One
of which, the Oasis (formerly Science Hub), has been completed
in January 2015. The remaining two on-going projects are 2
Senoko South Road and SSPARKLE @SP2. Asset enhancements
at 40 Penjuru Lane (formerly C&P Logistics Hub) and Techlink &
Techview, which were investments committed in the financial
year ended 31 March 2014 are still in progress.
In March 2015, the Manager secured a 57,513 sqm plot of land,
located in Jiashan at the south-western border of Shanghai,
for the development of a logistics property. The single-storey
modern logistics facility with a GFA of approximately 35,244
sqm, based on a plot ratio utilisation rate of 0.6 (permitted
1.5), is expected to complete in 1Q 2016. The total cost of the
development, including the cost of the land, is approximately
M A N A G E R ’ S R E P O R T
RMB105.2 million (or approximately S$23.7 million). With
China’s rising domestic consumption and booming e-commerce
market, there has been higher demand for modern logistics
facilities located close to major consumer markets. Most of the
current warehouses in China are unable to meet the standards
required by logistics providers, hence demand has continued to
outpace the limited supply. The Manager believes that leasing
activity and rentals of logistics properties will be well supported
by the fundamentals of the market in China. Pre-completion
marketing of the space has already commenced.
In April 2015, the development of DBS Asia Hub Phase 2 in
Changi Business Park was completed. DBS will lease the entire
block until July 2020.
The total value of all on-going projects amounts to S$114.9 million.
COMPLETED INVESTMENTS IN FY14/15
Value (S$m)
Completed
Acquisition
770.6
The Kendall
113.7
Mar-15
Aperia
463.0
Aug-14
Hyflux Innovation Centre
193.9
Jun-14
Asset Enhancement Projects
60.0
Oasis (formerly Science Hub)
8.4
Jan-15
The Alpha
11.1
Jan-15
1 Changi Business Park Crescent
8.1
Nov-14
Corporation Place
14.5
Aug-14
LogisTech
6.6
Aug-14
Techquest
4.3
Jul-14
5 Toh Guan Road East
7.0
Jun-14
Total
830.6
ON-GOING PROJECTS AS AT 31 MARCH 2015
Value (S$m)
Completion
Development
21.8
DBS Asia Hub Phase 2
21.8
April 2015
Value (S$m)
Estimated Completion
Development
23.7
Jiashan Logistics Facility
23.7
1Q 2016
Asset Enhancement Projects
91.2
2 Senoko South Road
12.1
4Q 2015
40 Penjuru Lane (formerly C&P Logistics Hub)
35.7
4Q 2015
Techlink & Techview
26.2
4Q 2015
SSPARKLE @SP2 (Gemini-Aries link)
17.2
2Q 2015
Total (excluding DBS Asia Hub Phase 2)
114.9
DIVESTMENT
During the financial year, the Manager completed the
divestment of No. 1 Kallang Place to its incumbent tenant,
Flextronics Manufacturing (Singapore) Pte Ltd for S$12.6
million, realising capital gains of S$0.4 million over the original
cost of investment, after transaction costs. The property had
remaining land tenure of about 10 years. This was the 3
rd
divestment by A-REIT.
The Manager will continue to selectively divest properties that
have reached a stage which offers limited scope for further
income growth and to recycle capital and optimise A-REIT’s
portfolio. In April 2015, the Manager also divested 26 Senoko
Way for S$24.8 million realising capital gains of S$9.0 million
over the original cost of investment and after transaction costs.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
