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 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, are going to grow the worth of CLAR’s Singapore account to about $12.3 billion. Upon the conclusion of the acquisition around 1Q2026, CLAR’s Singapore account are going to represent 68% of its overall assets under management (AUM).
He adds that the buildings’ “solid contract profile” is a “unusual and appealing possibility” in Singapore’s industrialized real property market and will “enhance the resilience of CLAR’s profit flow.”
Need to the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is expected to boost by around 0.124 cents or 0.8% for the FY2024 ended Dec 31, 2024 on a pro forma basis.
CLAR’s trustee has additionally participated in a share sale contract with Supreme REIT and Clay SG Holdings I Pte. Ltd to acquire 100% of the provided share capital of Waterbay Investment Pte. Ltd., the recorded owner of the property located at 9 Kallang Sector.
” These accretive purchases set up on our recent acquisitions of a Tier III colocation information centre and a costs business spot real estate which were finished in August,” states William Tay, executive director and CEO of CLAR’s executive.
The recommended purchase is assumed 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 expenses.
In accordance with the purchases, CLAR’s trustee has actually become part of conditional put and call alternative contracts 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 suggesting to get 3 properties in Singapore for an absolute consideration of $565.8 million, which includes the approximated upfront land and enhancement costs of $33.2 million. The accumulated market value of the portfolio is individually valued at approximately $589 million.
The target properties are fully taken up by 19 renters with a long weighted average lease expiry (WALE) of about 5.5 years. These lessees are openly listed firms and global companies in sectors like electronics & semiconductors, transport & logistics, precision manufacturing in addition to pharmaceuticals & life sciences. CLAR even anticipates rental development possibilities with rental escalations in the majority of the leases varying from 1% to 5% per annum. In-place rents are around 15% below market rents, mentions the REIT executive in its Oct 7 statement.
