CapitaLand and Ascendas Reit to jointly redevelop 1 Science Park Drive
The redevelopment will cost $883m.
CapitaLand Development (CLD) and Ascendas Reit have formed a joint venture to invest $883m in redeveloping 1 Science Park Drive into a life science and innovation campus.
It follows the sale of 1 Science Park Drive by Ascendas Reit to the joint venture for $103m. CLD owns a 66% interest in the joint venture, while Ascendas Reit owns the remaining 34%.
Expected to be fully completed by 2025, 1 Science Park Drive caters to demand from tenants in new economy sectors such as biomedical sciences, digital and technology, which are continuing to expand in Singapore amidst a greater focus on healthcare, deep tech and accelerating digital transformation. About 80,000sqm or 71% of the 112,500sqm of business park space has been designed to accommodate biomedical research and development (R&D) activities.
CLD CEO Jason Leow said, "As the master developer, owner and operator of SSP 1, we have been steadily unlocking the precinct's potential through redevelopment and land intensification initiatives and will continue to do so in the next few years. The redevelopment of 1 Science Park Drive is the latest milestone in this strategy, aimed at providing modern workspace solutions in a campus-style environment that will reinforce SSP 1's position as one of the most prestigious R&D hubs in the region."
"On a stabilised basis, the investment is expected to generate a net property income yield of approximately 6.3%, re-creating value for Ascendas Reit's Unitholders. We will also have the first right to acquire the remaining 66% interest when the redeveloped property achieves stabilised occupancy," added Ascendas Reit CEO William Tay.
Since its development in the 1980s, SSP 1 has become the leading hub for R&D in Southeast Asia. Today, it is home to over 350 laboratories, multinational corporations, and leading global digital and technology companies. SSP 1 is about a 15-minute drive from Singapore's Central Business District. Its proximity to the National University of Singapore and National University Hospital has made it an ideal location for R&D, innovation and test-bedding.