CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
The portfolio, which consists of a four-storey ramp-up logistics real estate at 2 Pioneer Field 1; Tuas Connection, a light industrial property on Tuas Loop comprising 15 double-storey industrial units; and an eight-storey high-specifications industrial property at 9 Kallang Sector, will grow the value of CLAR’s Singapore portfolio to about $12.3 billion. Upon the conclusion of the purchase around 1Q2026, CLAR’s Singapore portfolio will account for 68% of its total assets under management (AUM).
According to the purchases, CLAR’s trustee has become part of conditional put and call choice contracts with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
Should the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is anticipated to improve by around 0.124 cents or 0.8% for the FY2024 ended Dec 31, 2024 on a pro forma basis.
The recommended acquisition is assumed to be accretive to CLAR’s distribution per unit (DPU). The anticipated initial year net real estate return is around 6.4% pre-transaction fees and 6.1% post-transaction costs.
The target properties are completely occupied by 19 tenants with a long weighted average lease expiry (WALE) of around 5.5 years. These lessees are publicly listed firms and global corporations in fields including electronics & semiconductors, transportation & logistics, precision manufacturing as well as drugs & biology. CLAR additionally expects rental development opportunities with rental escalations in a lot of the leases varying from 1% to 5% per annum. In-place rents are about 15% below market rents, mentions the REIT manager in its Oct 7 news.
He adds that the real estates’ “sturdy lease profile” is a “rare and attractive chance” in Singapore’s industrial real estate market and will “boost the resilience of CLAR’s revenue flow.”
” These accretive purchases set up on our current purchases of a Tier III colocation information centre and a costs business place real estate which were accomplished in August,” says William Tay, executive director and CEO of CLAR’s executive.
CapitaLand Ascendas REIT (CLAR) is recommending to obtain 3 properties in Singapore for a full consideration of $565.8 million, that includes the estimated upfront land and enhancement costs of $33.2 million. The aggregate market value of the portfolio is independently price at around $589 million.
CLAR’s trustee has also become part of a share sale arrangement with Supreme REIT and Clay SG Holdings I Pte. Ltd to get 100% of the provided share capital of Waterbay Investment Pte. Ltd., the listed owner of the property located at 9 Kallang Sector.
