Lock Mun Yee and Li Jialin of CGS International have kept their "add" call and $3.10 target price on CapitaLand Ascendas REIT(CLAR) after its $700 million acquisition of two properties.
The first property, 9 Tai Seng Drive, is a data centre with a total NLA of 6,968 sq m and is 100% occupied, with a weighted average lease expiry (WALE) of 4.4 years. The purchase price of $455.2 million translates into a 7.2% NPI yield.
The second property, 5 Science Park Drive, has a total NLA of 22,488 sq m and is part of the “Geneo” life sciences and innovation cluster in Singapore Science Park 1.
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