CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
CapitaLand Ascendas REIT (CLAR) is proposing to obtain three real properties in Singapore for a full consideration of $565.8 million, that includes the approximated upfront land and enhancement costs of $33.2 million. The collected of the portfolio is individually valued at approximately $589 million.
The proposed acquisition is anticipated to be accretive to CLAR’s distribution per unit (DPU). The expected very first year net property yield is around 6.4% pre-transaction costs and 6.1% post-transaction expenses.
The ideal properties are completely filled by 19 tenants with a long weighted average lease expiry (WALE) of about 5.5 years. These tenants are publicly listed companies and global companies in fields such as electronics & semiconductors, transportation & logistics, precision manufacturing in addition to pharmaceuticals & science of life. CLAR even expects leasing growth possibilities 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, states the REIT executive in its Oct 7 announcement.
” These accretive acquisitions set up on our current purchases of a Tier III colocation data centre and a costs business space property which were finished in August,” claims William Tay, executive director and CEO of CLAR’s executive.
CLAR’s trustee has actually additionally become part of a share sale agreement 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 proprietor of the property located at 9 Kallang Sector.
The Arcady @ Boon Keng showflat
According to the procurements, CLAR’s trustee has entered into 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.
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.
The portfolio, that is composed 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 increase the value of CLAR’s Singapore portfolio to about $12.3 billion. Upon the completion of the procurement around 1Q2026, CLAR’s Singapore account are going to make up 68% of its overall assets under management (AUM).
He adds that the buildings’ “solid lease profile” is a “uncommon and appealing possibility” in Singapore’s industrial real estate market and will “improve the resilience of CLAR’s revenue stream.”
