CapitaLand Ascendas Reit buys two Singapore industrial assets and Japan data centre for $1.4 bil
CapitaLand Ascendas Reit (CLAR) has declared the procurement of three industrial properties across Singapore and Japan for $1.4 billion.
2 of the properties are in Singapore. CLAR is buying a 100% stake in 25 Loyang Crescent, a cluster of ramp-up logistics and commercial establishments, for $504.2 million, including an upfront land premium of $46.35 million.
The third and very last property is a Tier III hyperscale information centre in Greater Osaka, Japan, by which the Reit is acquiring a 49% interest for $620.7 million. A fund handled by Mitsui & Co Realty Management, a branch of Mitsui & Co, stores the remaining interest in the information hub.
The overall procurement investment is approximated at $1.41 billion, comprising the accumulation acquisition point, the procurement fees owed to CLAR’s supervisor, and other transaction-related expenses. To assist fund the procurement, CLAR has released a private placement and advantageous offering targeted at increasing gross proceeds of at the very least $900 million.
It is also acquiring a 50% interest rates in Ascent, a business park at 2 Science Park Drive, for $245 million. A global sovereign wealth fund is acquiring the staying 50% passion in Ascent, adds CLAR in a March 24 release.
The sale of 25 Loyang Crescent to CLAR was brokered by CBRE. “We remain to see robust investor cravings for high-quality industrial realty, specifically properties backed by long-term earnings safety and security,” remarks Loh Lee Fen, CBRE Singapore’s head of commercial resources markets. “The conditioning of interest rates to their lowest levels since 2022 has actually further strengthened acquiring energy,” she includes.
The procurement of the data centre marks the Reit’s first venture inside Japan. “CLAR’s new growth in to Japan shows our disciplined strategy to scaling and diversifying CLAR’s global data center portfolio across essential established digital centers with solid interest motorists and connectivity,” says William Tay, CEO and executive director of CLAR’s manager.
The 3 procurements are expected to be distribution per unit (DPU)-accretive for CLAR, on a pro forma basis. The DPU accumulation is approximated to be around 0.318 cents or 2.1%, assuming all 3 procurements were completed on Jan 1, 2025.
Nonetheless, Singapore continues to be the foundation of CLAR’s portfolio, the Reit states. With the purchase of 25 Loyang Crescent and Ascent, CLAR’s Singapore profile will enhance to around $13.2 billion, representing 66% of the Reit’s total portfolio properties under management of $19.9 billion.
