CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
The portfolio, that comprises of a four-storey ramp-up logistics real estate at 2 Pioneer Sector 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 raise the worth of CLAR’s Singapore account to about $12.3 billion. Upon the conclusion of the acquisition around 1Q2026, CLAR’s Singapore collection will make up 68% of its complete assets under management (AUM).
The target real properties are fully filled by 19 tenants with a long weighted average lease expiry (WALE) of about 5.5 years. These lessees are openly listed firms and multinational corporations in markets including electronics & semiconductors, transportation & logistics, precision manufacturing along with drugs & life sciences. CLAR also anticipates rent growth chances with rental escalations in the majority of the leases ranging from 1% to 5% per annum. In-place rents are around 15% below market rents, says the REIT executive in its Oct 7 news.
Newport Residences condominium
Must the acquisitions be completed 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.
In line with the purchases, CLAR’s trustee has participated in conditional put and call option contracts with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
CLAR’s trustee has additionally become part of a share sale agreement with Supreme REIT and Clay SG Holdings I Pte. Ltd to get 100% of the issued share capital of Waterbay Investment Pte. Ltd., the recorded proprietor of the property located at 9 Kallang Sector.
He includes that the buildings’ “strong lease profile” is a “rare and attractive possibility” in Singapore’s industrialized real property market and will “improve the resilience of CLAR’s revenue flow.”
” These accretive purchases set up on our recent procurements of a Tier III colocation information centre and a premium business place real estate which were accomplished in August,” states William Tay, executive director and chief executive officer of CLAR’s executive.
The proposed acquisition is expected to be accretive to CLAR’s distribution per unit (DPU). The expected first year net property yield is about 6.4% pre-transaction costs and 6.1% post-transaction costs.
CapitaLand Ascendas REIT (CLAR) is proposing to acquire 3 real estates in Singapore for an absolute consideration of $565.8 million, that includes the approximated upfront land and enhancement costs of $33.2 million. The accumulated of the account is separately valued at around $589 million.
