CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
The proposed procurement is assumed to be accretive to CLAR’s distribution per unit (DPU). The expected very first year net real estate yield is around 6.4% pre-transaction fees and 6.1% post-transaction costs.
” These accretive purchases establish on our current acquisitions of a Tier III colocation information centre and a premium business place real estate that were finished in August,” claims William Tay, executive supervisor and CEO of CLAR’s manager.
The target properties are totally occupied by 19 tenants with a long weighted average lease expiry (WALE) of about 5.5 years. These lessees are openly listed firms and international companies in fields like electronic devices & semiconductors, transport & logistics, precision engineering in addition to pharmaceuticals & science of life. CLAR additionally expects rental development possibilities with rental escalations in most of the leases ranging from 1% to 5% per annum. In-place rents are about 15% below market rents, mentions the REIT manager in its Oct 7 statement.
The account, which 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, will raise the worth of CLAR’s Singapore portfolio to about $12.3 billion. Upon the completion of the procurement around 1Q2026, CLAR’s Singapore portfolio are going to account for 68% of its total assets under management (AUM).
According to the purchases, CLAR’s trustee has 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.
Need to the acquisitions be completed on Jan 1, 2024, CLAR’s DPU is anticipated to improve by around 0.124 cents or 0.8% for the FY2024 ended Dec 31, 2024 on a pro forma basis.
He includes that the real estates’ “sturdy rent account” is a “unusual and appealing possibility” in Singapore’s industrial property market and will “enhance the durability of CLAR’s income stream.”
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 proprietor of the property located at 9 Kallang Sector.
CapitaLand Ascendas REIT (CLAR) is recommending to get three real properties in Singapore for an absolute consideration of $565.8 million, that includes the estimated upfront land and enhancement costs of $33.2 million. The accumulated of the portfolio is independently worth at around $589 million.
