MANAGER’S REPORT
• The portfolio comprises triple-net leases (where statutory
outgoings and operating costs are recovered from the
tenants), minimising operational demand. Leases also
include annual rental escalation of 3.3% on a portfolio
basis, which is generally higher than similar leases in
Singapore.
• Weighted average lease expiry (WALE) of the 27
properties stood at 5.2 years as at 31 March 2016
compared to 3.5 years and 2.6 years for the Singapore
and China portfolio respectively.
InMarch 2016, A-REIT acquiredONE@Changi City, a premium
quality business park property for S$420.0 million. The
property is A-REIT’s 7
th
business park property within Changi
Business Park and is part of the mixed-use development
comprising Changi City Point (a suburban retail mall) and
Capri by Fraser, Changi City (a hotel residence). ONE@
Changi City is 97.8% occupied with high quality tenants such
as Credit Suisse and J.P. Morgan.
Two development projects were completed during the year:
1) In April 2015, DBS Asia Hub Phase 2 was completed and
fully leased to DBS Bank until 2020, 2) The single-storey
logistics facility in Jiashan, China was completed in March
2016. The Manager is actively negotiating with potential
tenants to lease the logistics space.
The Manager continues to take a proactive approach to
improve portfolio returns via asset enhancement initiatives.
Projects worth S$96.0 million across 5 properties were
completed. This included the new 4-storey logistics block
at 40 Penjuru Lane, Sparkle (a link block with additional
amenities space connecting The Aries and The Gemini) as
well as upgrading works at various properties to enhance
building specifications.
During the year, the Manager embarked on 7 new asset
enhancement initiatives with an estimated value of S$52.5
million. Two of which, Honeywell building and Cintech I to IV, were
completed in September 2015 and February 2016 respectively.
The remaining five projects are on-going as at 31 March 2016.
COMPLETED INVESTMENTS IN FY15/16
Country
Purchase Price /
Development Cost (S$m)
Completed
Acquisitions
1,546.8
ONE@Changi City
Singapore
420.0
Mar-16
6-20 Clunies Ross Street, Pemulwuy
Australia (Sydney)
79.2^ (A$ 76.6m)
Feb-16
Australian Logistics Portfolio
Australia (Sydney,
Melbourne, Brisbane, Perth)
1,047.6^ (A$ 1,012.9m)
Oct-15, Nov-15
Development Projects
43.9
A-REIT Jiashan Logistics Centre
China (Jiashan)
22.1* (RMB 105.2m)
Mar-16
DBS Asia Hub Phase 2
Singapore
21.8
Apr-15
Asset Enhancement Initiatives
96.0
Cintech I to IV
Singapore
12.7
Feb-16
40 Penjuru Lane
Singapore
35.7
Oct-15
Honeywell Building
Singapore
4.2
Sep-15
Techlink & Techview
Singapore
26.2
Jul-15
Sparkle (Gemini-Aries Link)
Singapore
17.2
Jun-15
TOTAL
1,686.7
^ Based on exchange rate of A$1.00 : S$1.0342
* Based on exchange rate of RMB1.00: S$0.2097
ON-GOING PROJECTS AS AT 31 MARCH 2016
Country
Value (S$m)
Estimated Completion
Asset Enhancement Initiatives
2 Senoko South Road
Singapore
12.1
2Q 2016
Acer Building
Singapore
10.7
2Q 2016
The Kendall
Singapore
1.6
3Q 2016
AkzoNobel House
Singapore
6.5
4Q 2016
The Aries
Singapore
4.7
4Q 2016
TOTAL
35.6
.32
A-REIT ANNUAL REPORT
2015/2016
