Ascendas Funds Management Ltd, the manager of Ascendas Real Estate Investment Trust (Ascendas Reit), has competed its acquisition fo two office properties located in San Francisco, USA, for $560.2 million.
Ascendas Reit acquired the properties from B505 Industries LLC and ARE-San Francisco No. 47. These are located at 510 Townsend Street and 505 Brannan Street in the South of Market submarket.
“This acquisition allows us to plant a foothold in San Francisco, one of the most dynamic and progressive cities in the US. The properties are newly completed in 2017 and are fully leased to two high-quality technology tenants, Stripe and Pinterest, for a long WALE of 9.1 years,” said William Tay, the Executive Director and CEO of the manager.
The proposed acquisition comprises two office properties strategically located in San Francisco, the epicentre of technology ecosystem and a leading life sciences cluster. San Francisco was ranked the second top US tech city behind San Jose.
Google, Facebook, FibroGen, and Vir Biotechnology are some of the renowned companies which have established their headquarters or regional offices in San Francisco, driven by the availability of a highly skilled and educated workforce, high standard of living, and excellent transportation infrastructure.
Both Properties are situated in the submarket of SoMa, the leading submarket in San Francisco with one of the highest concentration (over 85% of inventory 3 ) of technology tenants in the city. Key tenants in the vicinity include Adobe, Paypal, Airbnb, Pinterest, and Cruise Automation
The property at 510 Townsend Street is fully leased to Stripe, Inc. (Stripe), a private global technology company that builds and licenses online payment infrastructure.
They are the third most valuable startup in the US, and recognised as a leader amongst merchant providers. Their customers include Salesforce, Amazon, Google, and Shopify, amongst others. Stripe’s lease has a remaining lease term of 7.0 years.
Pinterest, Inc. (Pinterest) has its headquarters at 505 Brannan Street and occupies 100% of the office space. Pinterest is a visual discovery engine used to find creative inspiration for recipes, home and style ideas, travel destinations, and many more topics.
It has over 400 million of monthly active users globally and is listed on the New York Stock Exchange (NYSE: PINS) with a market capitalisation of more than US$35 billion. Pinterest’s lease has a remaining lease term of 12.4 years. – BusinessNewsAsia.com