Capitaland Ascendas Reit Proposes Acquire Three Industrial And Logistics Properties Singapore 5658

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CapitaLand Ascendas REIT (CLAR) has announced its intention to acquire a portfolio of three properties in Singapore for a total consideration of $565.8 million. The portfolio, which is valued at around $589 million, includes a four-storey ramp-up logistics property, a light industrial property, and an eight-storey high-specifications industrial property. These acquisitions will increase the value of CLAR’s Singapore portfolio to approximately $12.3 billion, accounting for 68% of its total assets under management. The properties are fully occupied by 19 tenants, with a long weighted average lease expiry of around 5.5 years. These tenants are publicly listed companies and multinational corporations in industries such as electronics & semiconductors, transportation & logistics, precision engineering, and pharmaceuticals & life sciences. The REIT manager expects rental growth opportunities with annual rental escalations and below-market rents, providing potential for increased cash flow. The acquisitions are expected to be accretive to CLAR’s distribution per unit, with a net property yield of around 6.4%. The trustee has entered into agreements for these acquisitions and the acquisitions are expected to improve CLAR’s DPU by around 0.124 cents or 0.8% on a pro forma basis. Executive Director and CEO of CLAR, William Tay, says that these acquisitions are a continuation of their recent acquisitions and will “enhance the resilience of CLAR’s income stream” due to the properties’ strong lease profile. This story first appeared on CapitaLand Ascendas REIT (CLAR) is proposing to acquire three properties in Singapore for a total consideration of $565.8 million, which includes the estimated upfront land and enhancement premiums of $33.2 million. The aggregate market value of the portfolio is independently valued at around $589 million. The portfolio consists of a four-storey ramp-up logistics property at 2 Pioneer Sector 1, Tuas Connection light industrial property on Tuas Loop, and an eight-storey high-specifications industrial property at 9 Kallang Sector. CLAR’s Singapore portfolio will increase to about $12.3 billion after the acquisitions are completed around 1Q2026, representing 68% of the REIT’s total assets under management (AUM). The target properties are fully occupied by 19 tenants with a long weighted average lease expiry (WALE) of about 5.5 years, including publicly listed companies and multinational corporations in industries such as electronics & semiconductors, transportation & logistics, precision engineering, and pharmaceuticals & life sciences. With rental escalations ranging from 1% to 5% per annum in most leases, CLAR expects rental growth opportunities. In-place rents are approximately 15% below market rents, according to the REIT manager’s Oct 7 announcement. Read also: CapitaLand Ascendas REIT to sell five industrial and logistics properties for $329 mil The proposed acquisitions are expected to add to CLAR’s distribution per unit (DPU). The expected first-year net property yield is around 6.4% pre-transaction costs and 6.1% post-transaction costs. If the acquisitions are completed on Jan 1, 2024, CLAR’s DPU is expected to increase by around 0.124 cents or 0.8% for the FY2024 ended Dec 31, 2024, on a pro forma basis. CLAR’s trustee has entered into conditional put and call option agreements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT. CLAR’s trustee has also entered into a share sale agreement with Supreme REIT and Clay SG Holdings I Pte. Ltd to acquire 100% of the issued share capital of Waterbay Investment Pte. Ltd., the registered proprietor of the property located at 9 Kallang Sector. “These accretive acquisitions build on our recent acquisitions of a Tier III colocation data centre and a premium business space property, completed in August,” says William Tay, executive director and CEO of CLAR’s manager. He adds that the properties’ “strong lease profile” is a “rare and attractive opportunity” in Singapore’s industrial property market and will “enhance the resilience of CLAR’s income stream.” Read also: CLAR expands logistics portfolio in UK for $350.1 mil This story first appeared on TRENDLINES, a financial news and information platform for investors, traders, and individuals interested in the markets. It is owned by CapitaLand Ascendas REIT, and the original article can be found at: https://www.trendlines.com.sg/content/capitaland-ascendas-reit-to-acquire-three-singapore-properties-for-5658-million. RELATED NEWS CLAR expands logistics portfolio in UK for $350.1 mil CapitaLand Ascendas REIT to acquire properties in Tai Seng and Science Park Drive for $700 mil CLAR expands US logistics portfolio with first sale and leaseback acquisition for $150.3 million