CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
CLAR’s trustee has additionally entered into 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 registered owner of the property located at 9 Kallang Sector.
Ought to the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is anticipated to enhance by around 0.124 cents or 0.8% for the FY2024 finished Dec 31, 2024 on a pro forma basis.
” These accretive purchases establish on our recent procurements of a Tier III colocation information centre and a costs business space real estate that were accomplished in August,” says William Tay, executive supervisor and chief executive officer of CLAR’s manager.
The account, that consists of a four-storey ramp-up logistics real estate at 2 Pioneer Industry 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 value of CLAR’s Singapore portfolio to about $12.3 billion. Upon the conclusion of the purchase around 1Q2026, CLAR’s Singapore portfolio are going to represent 68% of its overall assets under management (AUM).
He includes that the real estates’ “solid lease profile” is a “rare and appealing chance” in Singapore’s industrial real estate market and will “improve the resilience of CLAR’s profit stream.”
In accordance with the purchases, CLAR’s trustee has participated in conditional put and call option arrangements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
CapitaLand Ascendas REIT (CLAR) is proposing to obtain 3 real properties in Singapore for a total consideration of $565.8 million, which includes the approximated upfront land and enhancement premiums of $33.2 million. The collected market value of the portfolio is separately worth at around $589 million.
The ideal properties are completely occupied by 19 renters with a long weighted average lease expiry (WALE) of around 5.5 years. These lessees are openly listed firms and multinational firms in fields like electronic devices & semiconductors, transportation & logistics, precision engineering as well as pharmaceuticals & life sciences. CLAR even anticipates rent development possibilities with rental escalations in most of the leases varying from 1% to 5% per annum. In-place rents are about 15% below market rents, says the REIT manager in its Oct 7 news.
The proposed acquisition is assumed to be accretive to CLAR’s distribution per unit (DPU). The expected first year net real estate yield is around 6.4% pre-transaction prices and 6.1% post-transaction expenses.
