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 property 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 account to about $12.3 billion. Upon the conclusion of the procurement around 1Q2026, CLAR’s Singapore accounts are going to make up 68% of its total assets under management (AUM).
The target real properties are completely filled by 19 renters with a long weighted average lease expiry (WALE) of about 5.5 years. These tenants are publicly listed companies and international firms in fields like electronic devices & semiconductors, transportation & logistics, precision manufacturing along with drugs & life sciences. CLAR additionally expects leasing development possibilities with rental escalations in most of the leases ranging from 1% to 5% per annum. In-place rents are about 15% below market rents, states the REIT manager in its Oct 7 news.
In line with the procurements, CLAR’s trustee has actually become part of conditional put and call alternative arrangements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
CapitaLand Ascendas REIT (CLAR) is recommending to acquire 3 real properties in Singapore for a full consideration of $565.8 million, that includes the approximated upfront land and enhancement premiums of $33.2 million. The collected market value of the portfolio is individually valued at approximately $589 million.
The proposed procurement is expected to be accretive to CLAR’s distribution per unit (DPU). The expected very first year net property yield is near 6.4% pre-transaction prices and 6.1% post-transaction prices.
He adds that the properties’ “sturdy lease account” is a “uncommon and appealing opportunity” in Singapore’s industrial property market and will “improve the durability of CLAR’s income flow.”
CLAR’s trustee has actually additionally entered into a share sale contract 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.
Need to the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is anticipated to boost by around 0.124 cents or 0.8% for the FY2024 ended Dec 31, 2024 on a pro forma basis.
” These accretive acquisitions set up on our recent procurements of a Tier III colocation data centre and a costs business spot real estate which were accomplished in August,” says William Tay, executive director and chief executive officer of CLAR’s manager.
