CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
CLAR’s trustee has likewise become part of a share sale arrangement with Supreme REIT and Clay SG Holdings I Pte. Ltd to get 100% of the issued share capital of Waterbay Investment Pte. Ltd., the registered owner of the property located at 9 Kallang Sector.
The recommended purchase is assumed to be accretive to CLAR’s distribution per unit (DPU). The expected initial year net real estate yield is around 6.4% pre-transaction prices and 6.1% post-transaction prices.
CapitaLand Ascendas REIT (CLAR) is proposing to acquire 3 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 accumulated market value of the portfolio is separately worth at around $589 million.
Nava Grove MCL Land and Sinarmas Land
The account, that is composed of a four-storey ramp-up logistics property 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 worth of CLAR’s Singapore account to about $12.3 billion. Upon the conclusion of the acquisition around 1Q2026, CLAR’s Singapore collection will represent 68% of its total assets under management (AUM).
He includes that the properties’ “solid contract account” is a “uncommon and attractive opportunity” in Singapore’s industrial property market and will “boost the resilience of CLAR’s revenue flow.”
The target real properties are fully filled by 19 renters with a long weighted average lease expiry (WALE) of about 5.5 years. These renters are publicly listed business and multinational companies in sectors like electronics & semiconductors, transportation & logistics, precision engineering in addition to pharmaceuticals & science of life. CLAR additionally anticipates rent growth chances 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.
Should the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is anticipated to improve by around 0.124 cents or 0.8% for the FY2024 finished Dec 31, 2024 on a pro forma basis.
In accordance with the procurements, CLAR’s trustee has actually become part of conditional put and call choice arrangements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
” These accretive acquisitions set up on our current purchases of a Tier III colocation information centre and a costs business space real estate that were accomplished in August,” states William Tay, executive director and chief executive officer of CLAR’s manager.
