CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
CLAR’s trustee has actually also entered into a share sale agreement 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.
Should the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is expected to boost by around 0.124 cents or 0.8% for the FY2024 ended Dec 31, 2024 on a pro forma basis.
The account, which consists of a four-storey ramp-up logistics 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 account to about $12.3 billion. Upon the conclusion of the procurement around 1Q2026, CLAR’s Singapore account are going to account for 68% of its overall assets under management (AUM).
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According to the acquisitions, CLAR’s trustee has actually become part of conditional put and call option contracts with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
The recommended purchase is expected to be accretive to CLAR’s distribution per unit (DPU). The expected very first year net real estate yield is about 6.4% pre-transaction prices and 6.1% post-transaction prices.
” These accretive acquisitions build on our current procurements of a Tier III colocation information centre and a premium business space real estate which were finished in August,” states William Tay, executive supervisor and chief executive officer of CLAR’s executive.
CapitaLand Ascendas REIT (CLAR) is recommending to acquire three properties in Singapore for a total consideration of $565.8 million, which includes the estimated upfront land and enhancement premiums of $33.2 million. The collected market value of the portfolio is individually valued at approximately $589 million.
He adds that the buildings’ “sturdy lease profile” is a “unusual and attractive chance” in Singapore’s industrial property market and will “improve the durability of CLAR’s profit stream.”
The ideal real properties are fully filled by 19 renters with a long weighted average lease expiry (WALE) of around 5.5 years. These tenants are openly listed business and global firms in sectors such as electronics & semiconductors, transport & logistics, precision manufacturing as well as drugs & life sciences. CLAR even anticipates rental development opportunities 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 manager in its Oct 7 statement.
