CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
The ideal properties are completely taken up by 19 tenants with a long weighted average lease expiry (WALE) of about 5.5 years. These renters are publicly listed business and multinational companies in markets such as electronics & semiconductors, transport & logistics, precision engineering in addition to pharmaceuticals & life sciences. CLAR also anticipates leasing development chances with rental escalations in most of the leases varying from 1% to 5% per annum. In-place rents are about 15% below market rents, states the REIT manager in its Oct 7 statement.
CapitaLand Ascendas REIT (CLAR) is suggesting to acquire three real properties in Singapore for an absolute consideration of $565.8 million, which includes the approximated upfront land and enhancement premiums of $33.2 million. The aggregate of the account is separately valued at around $589 million.
CLAR’s trustee has actually likewise 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 recorded proprietor of the property located at 9 Kallang Sector.
He includes that the real estates’ “sturdy rent profile” is a “rare and attractive opportunity” in Singapore’s industrialized property market and will “improve the durability of CLAR’s revenue flow.”
In accordance with the acquisitions, 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.
” These accretive acquisitions build on our current procurements of a Tier III colocation information centre and a costs business spot property which were completed in August,” states William Tay, executive supervisor and CEO of CLAR’s manager.
The portfolio, which comprises 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 portfolio to about $12.3 billion. Upon the completion of the procurement around 1Q2026, CLAR’s Singapore accounts are going to account for 68% of its total assets under management (AUM).
Ought to 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.
The recommended acquisition is expected to be accretive to CLAR’s distribution per unit (DPU). The expected first year net property yield is about 6.4% pre-transaction costs and 6.1% post-transaction costs.
