CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
In accordance with the purchases, 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.
CapitaLand Ascendas REIT (CLAR) is suggesting to obtain 3 properties in Singapore for a total consideration of $565.8 million, that includes the estimated upfront land and enhancement costs of $33.2 million. The aggregate of the portfolio is independently worth at around $589 million.
The recommended procurement is expected to be accretive to CLAR’s distribution per unit (DPU). The expected initial year net real estate return is about 6.4% pre-transaction prices and 6.1% post-transaction prices.
CLAR’s trustee has actually also entered into a share sale contract with Supreme REIT and Clay SG Holdings I Pte. Ltd to obtain 100% of the issued share capital of Waterbay Investment Pte. Ltd., the registered owner of the property located at 9 Kallang Sector.
Must the acquisitions be finished 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.
The portfolio, which is composed of a four-storey ramp-up logistics real 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 increase the worth of CLAR’s Singapore account to about $12.3 billion. Upon the conclusion of the purchase around 1Q2026, CLAR’s Singapore account are going to make up 68% of its complete assets under management (AUM).
He adds that the buildings’ “strong rent profile” is a “unusual and attractive chance” in Singapore’s industrial real estate market and will “boost the durability of CLAR’s income flow.”
The ideal real properties are fully taken up by 19 tenants with a long weighted average lease expiry (WALE) of about 5.5 years. These renters are publicly listed companies and multinational firms in sectors including electronic devices & semiconductors, transportation & logistics, precision manufacturing along with drugs & science of life. CLAR additionally expects rent development opportunities with rental escalations in most of the leases ranging from 1% to 5% per annum. In-place rents are around 15% below market rents, states the REIT executive in its Oct 7 news.
” These accretive purchases establish on our recent purchases of a Tier III colocation information centre and a premium business place real estate that were completed in August,” says William Tay, executive supervisor and CEO of CLAR’s executive.
