Even with the planned expansion of Ascendas Real Estate Investment Trust's (A-Reit) assets in China to S$1 billion over the next three to five years, a large bulk of the trust's portfolio still comprises industrial properties in Singapore.
A-Reit Chief Executive Tan Ser Ping said the trust aims to achieve a Singapore-China portfolio ratio of 80:20.
The booming growth in China has caused both local and foreign companies to expand into the world's second-largest economy, fuelling demand for industrial properties.
"China has developed to such a stage where every business is looking at that market. Within our customer base, there're many that are operating in China," he said.
Managed by Ascendas Group, a wholly-owned subsidiary of JTC Corp, A-Reit has 93 properties in Singapore, valued at S$5.5 billion.
In February, A-Reit announced that it had signed a deal to acquire a business park in Shanghai for S$117.6 million, upon its completion by the end of 2012.
"We note that while the move to China is likely to be at a measured pace, it dilutes A-Reit's Singapore exposure, which has traditionally been a draw for investors," said a HSBC report.
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