CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
The proposed acquisition is expected to be accretive to CLAR’s distribution per unit (DPU). The anticipated very first year net property yield is about 6.4% pre-transaction fees and 6.1% post-transaction expenses.
The ideal real properties are completely taken up by 19 renters with a long weighted average lease expiry (WALE) of around 5.5 years. These tenants are publicly listed companies and multinational corporations in sectors such as electronic devices & semiconductors, transport & logistics, precision manufacturing as well as drugs & life sciences. CLAR also anticipates rent growth 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, mentions the REIT manager in its Oct 7 news.
” These accretive procurements set up on our current purchases of a Tier III colocation data centre and a costs business place property which were completed in August,” claims William Tay, executive director and chief executive officer of CLAR’s manager.
Bagnall Haus Upper East Coast Road
He includes that the real estates’ “solid contract profile” is a “unusual and attractive possibility” in Singapore’s industrialized real property market and will “improve the resilience of CLAR’s profit flow.”
The account, which is composed 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 grow the value of CLAR’s Singapore account to around $12.3 billion. Upon the completion of the acquisition around 1Q2026, CLAR’s Singapore portfolio are going to represent 68% of its complete assets under management (AUM).
In accordance with the acquisitions, CLAR’s trustee has entered into 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 proposing to acquire 3 real estates in Singapore for an absolute consideration of $565.8 million, which includes the estimated upfront land and enhancement premiums of $33.2 million. The aggregate market value of the portfolio is individually worth at approximately $589 million.
Should the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is anticipated to improve by around 0.124 cents or 0.8% for the FY2024 finished Dec 31, 2024 on a pro forma basis.
CLAR’s trustee has actually likewise entered into a share sale agreement with Supreme REIT and Clay SG Holdings I Pte. Ltd to acquire 100% of the provided share capital of Waterbay Investment Pte. Ltd., the recorded owner of the property located at 9 Kallang Sector.
