CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
The portfolio, that comprises of a four-storey ramp-up logistics estate 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, are going to raise the worth of CLAR’s Singapore portfolio to about $12.3 billion. Upon the conclusion of the procurement around 1Q2026, CLAR’s Singapore account are going to make up 68% of its complete assets under management (AUM).
Must the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is expected to improve by around 0.124 cents or 0.8% for the FY2024 finished Dec 31, 2024 on a pro forma basis.
” These accretive acquisitions set up on our recent acquisitions of a Tier III colocation data centre and a costs business place property which were finished in August,” says William Tay, executive director and chief executive officer of CLAR’s executive.
The ideal real properties are completely occupied by 19 renters with a long weighted average lease expiry (WALE) of around 5.5 years. These tenants are publicly listed companies and international firms in sectors such as electronic devices & semiconductors, transportation & logistics, precision manufacturing along with pharmaceuticals & science of life. CLAR even expects rental 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, says the REIT manager in its Oct 7 news.
The recommended purchase is assumed to be accretive to CLAR’s distribution per unit (DPU). The anticipated first year net real estate yield is around 6.4% pre-transaction fees and 6.1% post-transaction prices.
CLAR’s trustee has actually additionally participated in a share sale contract with Supreme REIT and Clay SG Holdings I Pte. Ltd to acquire 100% of the issued share capital of Waterbay Investment Pte. Ltd., the recorded owner of the property located at 9 Kallang Sector.
CapitaLand Ascendas REIT (CLAR) is recommending to get three real estates in Singapore for a full consideration of $565.8 million, that includes the estimated upfront land and enhancement premiums of $33.2 million. The collected market value of the account is independently valued at approximately $589 million.
In line with the purchases, CLAR’s trustee has actually 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.
He includes that the buildings’ “strong rent account” is a “uncommon and appealing chance” in Singapore’s industrial property market and will “enhance the durability of CLAR’s revenue flow.”
