Ascendas Real Estate Investment Trust is set to acquire three buildings at Science Park Drive from Ascendas Land for $420 million.

The properties at 12, 14 and 16 Science Park Drive are three built-to-suit Science Park buildings under a single land title. Two of the buildings are leased to DSO National Laboratories, Singapore’s national defence R&D organisation. The third building is leased to DNV GL Singapore, a Norwegian risk management company, for its Southeast Asia regional headquarters.

The property occupies a 424,489 sq ft plot that has a remaining land lease tenure of about 64.7 years (as at Sept 30). It has a contractual gross floor area and net lettable area of 848,967 sq ft. The property is fully occupied.

The proposed acquisition is expected to generate a net property income yield of about 6.3% (before acquisition costs) and 6% (post-acquisition costs) in the first year of ownership. The annualised pro forma financial effect of the proposed acquisition on the distribution per unit would be about 0.059 cent a unit for FY2016 ended March 31. The completion of the proposed acquisition is expected to take place within the current financial year.