CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
The proposed purchase is anticipated to be accretive to CLAR’s distribution per unit (DPU). The anticipated very first year net real estate return is around 6.4% pre-transaction fees and 6.1% post-transaction expenses.
The target real properties are fully 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 companies in industries like electronics & semiconductors, transportation & logistics, precision manufacturing along with drugs & science of life. CLAR additionally expects leasing growth possibilities with rental escalations in the majority 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 announcement.
CapitaLand Ascendas REIT (CLAR) is suggesting to get three real estates in Singapore for an absolute consideration of $565.8 million, that includes the approximated upfront land and enhancement premiums of $33.2 million. The aggregate market value of the account is independently worth at around $589 million.
He includes that the properties’ “strong rent profile” is a “unusual and attractive possibility” in Singapore’s industrialized real property market and will “boost the durability of CLAR’s income stream.”
” These accretive purchases establish on our current purchases of a Tier III colocation data centre and a costs business place real estate which were finished in August,” claims William Tay, executive director and CEO of CLAR’s executive.
According to the procurements, CLAR’s trustee has entered into conditional put and call choice contracts with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
Must the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is expected to improve by around 0.124 cents or 0.8% for the FY2024 finished Dec 31, 2024 on a pro forma basis.
The account, which is composed of a four-storey ramp-up logistics property 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, will raise the worth of CLAR’s Singapore account to about $12.3 billion. Upon the conclusion of the purchase around 1Q2026, CLAR’s Singapore account will account for 68% of its total assets under management (AUM).
CLAR’s trustee has additionally participated in a share sale arrangement with Supreme REIT and Clay SG Holdings I Pte. Ltd to acquire 100% of the issued share capital of Waterbay Investment Pte. Ltd., the listed owner of the property located at 9 Kallang Sector.
