CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
According to the purchases, CLAR’s trustee has actually participated in conditional put and call option arrangements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
The account, which is composed of a four-storey ramp-up logistics real estate at 2 Pioneer Industry 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 increase the value of CLAR’s Singapore portfolio to around $12.3 billion. Upon the completion of the procurement around 1Q2026, CLAR’s Singapore collection will make up 68% of its total assets under management (AUM).
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.
CLAR’s trustee has actually also participated in a share sale contract with Supreme REIT and Clay SG Holdings I Pte. Ltd to obtain 100% of the provided share capital of Waterbay Investment Pte. Ltd., the recorded owner of the property located at 9 Kallang Sector.
The suggested procurement is expected to be accretive to CLAR’s distribution per unit (DPU). The expected very first year net real estate yield is around 6.4% pre-transaction costs and 6.1% post-transaction costs.
The ideal real properties are totally taken up by 19 renters with a long weighted average lease expiry (WALE) of about 5.5 years. These renters are openly listed firms and multinational corporations in fields like electronics & semiconductors, transport & logistics, precision manufacturing as well as pharmaceuticals & life sciences. CLAR even anticipates rental growth opportunities with rental escalations in most of the leases varying from 1% to 5% per annum. In-place rents are around 15% below market rents, mentions the REIT manager in its Oct 7 statement.
CapitaLand Ascendas REIT (CLAR) is suggesting to acquire 3 real properties in Singapore for a full consideration of $565.8 million, which includes the estimated upfront land and enhancement costs of $33.2 million. The aggregate of the portfolio is separately price at approximately $589 million.
He adds that the buildings’ “strong rent profile” is a “rare and attractive opportunity” in Singapore’s industrial property market and will “boost the resilience of CLAR’s revenue stream.”
” These accretive procurements build on our current purchases of a Tier III colocation data centre and a premium business spot property that were accomplished in August,” states William Tay, executive director and chief executive officer of CLAR’s manager.
