CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
CLAR’s trustee has also become part of a share sale arrangement with Supreme REIT and Clay SG Holdings I Pte. Ltd to acquire 100% of the released share capital of Waterbay Investment Pte. Ltd., the recorded proprietor of the property located at 9 Kallang Sector.
The portfolio, which comprises of a four-storey ramp-up logistics property 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, are going to raise the worth of CLAR’s Singapore portfolio to around $12.3 billion. Upon the completion of the purchase around 1Q2026, CLAR’s Singapore accounts are going to account for 68% of its total assets under management (AUM).
CapitaLand Ascendas REIT (CLAR) is recommending to obtain 3 properties in Singapore for an absolute consideration of $565.8 million, which includes the estimated upfront land and enhancement costs of $33.2 million. The aggregate of the account is separately worth at around $589 million.
” These accretive purchases set up on our current purchases of a Tier III colocation information centre and a premium business place property which were completed in August,” states William Tay, executive director and CEO of CLAR’s manager.
The ideal real properties are totally occupied by 19 tenants with a long weighted average lease expiry (WALE) of around 5.5 years. These tenants are openly listed firms and multinational firms in sectors like electronic devices & semiconductors, transportation & logistics, precision manufacturing as well as drugs & science of life. CLAR even anticipates rental growth chances with rental escalations in most of the leases ranging from 1% to 5% per annum. In-place rents are around 15% below market rents, states the REIT manager in its Oct 7 announcement.
In line with the purchases, CLAR’s trustee has actually entered into conditional put and call choice arrangements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
Ought to the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is expected to enhance by around 0.124 cents or 0.8% for the FY2024 finished Dec 31, 2024 on a pro forma basis.
He adds that the real estates’ “solid lease profile” is a “unusual and attractive possibility” in Singapore’s industrial real property market and will “improve the resilience of CLAR’s revenue flow.”
The proposed acquisition is expected to be accretive to CLAR’s distribution per unit (DPU). The expected initial year net property return is around 6.4% pre-transaction fees and 6.1% post-transaction costs.
