CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
CapitaLand Ascendas REIT (CLAR) is proposing to get three real estates in Singapore for a full consideration of $565.8 million, which includes the approximated upfront land and enhancement costs of $33.2 million. The accumulated of the portfolio is individually price at approximately $589 million.
The proposed acquisition is anticipated to be accretive to CLAR’s distribution per unit (DPU). The anticipated very first year net real estate yield is about 6.4% pre-transaction prices and 6.1% post-transaction costs.
The ideal properties are fully occupied by 19 tenants with a long weighted average lease expiry (WALE) of around 5.5 years. These tenants are openly listed companies and international corporations in fields like electronic devices & semiconductors, transportation & 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 around 15% below market rents, says the REIT executive in its Oct 7 news.
The account, which comprises of a four-storey ramp-up logistics 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, will raise the value of CLAR’s Singapore portfolio to around $12.3 billion. Upon the completion of the acquisition around 1Q2026, CLAR’s Singapore accounts will represent 68% of its total assets under management (AUM).
CLAR’s trustee has also entered into a share sale contract with Supreme REIT and Clay SG Holdings I Pte. Ltd to get 100% of the provided share capital of Waterbay Investment Pte. Ltd., the registered proprietor of the property located at 9 Kallang Sector.
Need 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.
” These accretive procurements establish on our current acquisitions of a Tier III colocation information centre and a costs business space real estate which were completed in August,” claims William Tay, executive supervisor and chief executive officer of CLAR’s executive.
He includes that the real estates’ “sturdy lease profile” is a “rare and appealing possibility” in Singapore’s industrialized property market and will “improve the resilience of CLAR’s profit stream.”
In accordance with the acquisitions, CLAR’s trustee has become part of conditional put and call alternative arrangements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
