CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
The ideal properties are totally occupied by 19 renters with a long weighted average lease expiry (WALE) of around 5.5 years. These tenants are openly listed firms and international corporations in sectors including electronic devices & semiconductors, transport & logistics, precision engineering in addition to drugs & science of life. CLAR additionally anticipates rent growth possibilities with rental escalations in the majority of the leases varying from 1% to 5% per annum. In-place rents are about 15% below market rents, says the REIT executive in its Oct 7 news.
CLAR’s trustee has additionally become part of a share sale arrangement with Supreme REIT and Clay SG Holdings I Pte. Ltd to acquire 100% of the released share capital of Waterbay Investment Pte. Ltd., the listed proprietor of the property located at 9 Kallang Sector.
The proposed acquisition is assumed to be accretive to CLAR’s distribution per unit (DPU). The anticipated initial year net real estate yield is near 6.4% pre-transaction costs and 6.1% post-transaction expenses.
Ought to the acquisitions be completed on Jan 1, 2024, CLAR’s DPU is expected to enhance by around 0.124 cents or 0.8% for the FY2024 ended Dec 31, 2024 on a pro forma basis.
CapitaLand Ascendas REIT (CLAR) is proposing to acquire 3 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 account is individually price at approximately $589 million.
” These accretive acquisitions establish on our current procurements of a Tier III colocation data centre and a premium business place real estate that were completed in August,” states William Tay, executive supervisor and chief executive officer of CLAR’s manager.
According to the acquisitions, CLAR’s trustee has become part of conditional put and call choice arrangements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
He adds that the properties’ “sturdy lease profile” is a “rare and appealing possibility” in Singapore’s industrialized real property market and will “enhance the resilience of CLAR’s income flow.”
The account, that is composed of a four-storey ramp-up logistics real estate at 2 Pioneer Market 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 worth of CLAR’s Singapore portfolio to about $12.3 billion. Upon the completion of the procurement around 1Q2026, CLAR’s Singapore accounts will make up 68% of its complete assets under management (AUM).
