CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
CLAR’s trustee has actually also become part of a share sale agreement with Supreme REIT and Clay SG Holdings I Pte. Ltd to get 100% of the released share capital of Waterbay Investment Pte. Ltd., the recorded owner of the property located at 9 Kallang Sector.
Ought to 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.
” These accretive acquisitions build on our current procurements of a Tier III colocation data centre and a premium business spot real estate which were accomplished in August,” claims William Tay, executive director and chief executive officer of CLAR’s manager.
The ideal real properties are fully occupied by 19 renters with a long weighted average lease expiry (WALE) of around 5.5 years. These renters are openly listed business and multinational firms in sectors including electronics & semiconductors, transportation & logistics, precision manufacturing as well as pharmaceuticals & biology. CLAR also expects leasing development chances with rental escalations in a lot of the leases varying from 1% to 5% per annum. In-place rents are about 15% below market rents, states the REIT executive in its Oct 7 announcement.
He adds that the buildings’ “strong lease account” is a “uncommon and attractive chance” in Singapore’s industrialized property market and will “boost the resilience of CLAR’s profit stream.”
The proposed acquisition is expected to be accretive to CLAR’s distribution per unit (DPU). The expected first year net real estate yield is about 6.4% pre-transaction costs and 6.1% post-transaction costs.
The portfolio, which comprises of a four-storey ramp-up logistics estate at 2 Pioneer Sector 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 completion of the purchase around 1Q2026, CLAR’s Singapore accounts will represent 68% of its complete assets under management (AUM).
CapitaLand Ascendas REIT (CLAR) is suggesting 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 of the account is separately price at approximately $589 million.
In line with the procurements, CLAR’s trustee has participated in conditional put and call option arrangements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
