CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
CLAR’s trustee has also entered into a share sale agreement 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.
Should the acquisitions be completed on Jan 1, 2024, CLAR’s DPU is expected to improve by around 0.124 cents or 0.8% for the FY2024 ended Dec 31, 2024 on a pro forma basis.
CapitaLand Ascendas REIT (CLAR) is proposing to obtain three real properties in Singapore for a total consideration of $565.8 million, which includes the approximated upfront land and enhancement costs of $33.2 million. The aggregate market value of the portfolio is individually worth at approximately $589 million.
The target real properties are completely filled by 19 tenants with a long weighted average lease expiry (WALE) of around 5.5 years. These tenants are publicly listed business and international companies in fields including electronic devices & semiconductors, transport & logistics, precision manufacturing in addition to drugs & science of life. CLAR also anticipates rental development possibilities with rental escalations in a lot 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 announcement.
He includes that the real estates’ “sturdy lease profile” is a “rare and attractive chance” in Singapore’s industrialized real property market and will “enhance the resilience of CLAR’s income stream.”
The account, which comprises 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, will grow the worth of CLAR’s Singapore portfolio to around $12.3 billion. Upon the conclusion of the purchase around 1Q2026, CLAR’s Singapore portfolio are going to account for 68% of its complete assets under management (AUM).
The proposed purchase is anticipated to be accretive to CLAR’s distribution per unit (DPU). The expected initial year net real estate yield is about 6.4% pre-transaction fees and 6.1% post-transaction expenses.
” These accretive purchases build on our current procurements of a Tier III colocation data centre and a premium business space real estate that were finished in August,” claims William Tay, executive supervisor and CEO of CLAR’s executive.
In line with the purchases, CLAR’s trustee has actually become part of conditional put and call alternative agreements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
