Capitaland Ascendas Reit Sell Five Industrial And Logistics Properties 329 Mil
CapitaLand Ascendas REIT, in line with its proactive capital recycling strategy, has announced plans to sell five industrial and logistics properties for a total of $329 million, with an expected net proceeds of $313.1 million. The properties, which include 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road and 19 & 21 Pandan Avenue, as well as 30 Tampines Industrial Avenue 3, are being sold at a premium of 6% over the total market value. The deal was brokered by CBRE and the buyers are unrelated third parties.
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The price at which these properties are being sold also represents a 20% premium over the total original purchase price of $274.2 million. According to CapitaLand Ascendas REIT, this move is in line with its objective of improving the quality of its portfolio and optimizing returns for its unitholders.
The proceeds from the sale may be used for various purposes, including funding committed investments, paying down debt, extending loans to subsidiaries, funding general corporate and working capital needs, and making distributions to unitholders. If the net proceeds were to be used to repay CapitaLand Ascendas REIT’s borrowings as at December 31, 2024, its aggregate leverage would reduce from 37.7% to approximately 36.6%.
The divestments are expected to be completed by the end of the year, and once completed, CapitaLand Ascendas REIT’s portfolio will consist of 226 properties, including 93 in Singapore, 34 properties in Australia, 49 properties in the US, and 50 properties in the United Kingdom/Europe.
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In addition to these divestments, CapitaLand Ascendas REIT has also announced a total aggregate value of $355.5 million worth of divestments in 2025, including the recently completed sale of Parkside, a business space property in Portland, the US, for $26.5 million. This move further strengthens CapitaLand Ascendas REIT’s position and allows it to continue expanding its logistics portfolio, as seen with its recent acquisition of properties in Tai Seng and Science Park Drive for $700 million, and its first sale and leaseback acquisition in the US for $150.3 million.
