CapitaLand Ascendas Reit buys two Singapore industrial assets and Japan data centre for $1.4 bil
Two of the assets operate in Singapore. CLAR is purchasing a 100% stake in 25 Loyang Crescent, a collection of ramp-up logistics and industrial buildings, for $504.2 million, featuring an upfront land fee of $46.35 million.
CapitaLand Ascendas Reit (CLAR) has already announced the acquisition of three industrial properties throughout Singapore and Japan for $1.4 billion.
It is also obtaining a 50% interest in Ascent, a business park at 2 Science Park Drive, for $245 million. An international sovereign wealth fund is acquiring the remaining 50% rate of interest in Ascent, adds CLAR in a March 24 release.
The third and last property is a Tier III hyperscale data facility in Greater Osaka, Japan, wherein the Reit is buying a 49% passion for $620.7 million. A fund handled by Mitsui & Co Realty Management, a subsidiary of Mitsui & Co, keeps the remaining interest in the data hub.
The three purchases are anticipated to be distribution per unit (DPU)-accretive for CLAR, on a pro forma basis. The DPU increase is estimated to be approximately 0.318 cents or 2.1%, presuming all three procurements were finished on Jan 1, 2025.
Nevertheless, Singapore stays the keystone of CLAR’s account, the Reit states. With the purchase of 25 Loyang Crescent and Ascent, CLAR’s Singapore account will certainly improve to around $13.2 billion, standing for 66% of the Reit’s total portfolio properties under management of $19.9 billion.
The purchase of the information centre notes the Reit’s very first foray into Japan. “CLAR’s brand-new growth into Japan reflects our disciplined technique to scaling and expanding CLAR’s international data centre portfolio throughout key well-known digital centers with solid demand chauffeurs and connection,” says William Tay, CEO and executive director of CLAR’s manager.
The complete procurement outlay is approximated at $1.41 billion, consisting of the aggregate purchase consideration, the acquisition fees owed to CLAR’s supervisor, and other transaction-related expenditures. To help money the purchase, CLAR has launched a private placement and preferential offering targeted at elevating gross proceeds of at the very least $900 million.
The sale of 25 Loyang Crescent to CLAR was agented by CBRE. “We remain to see robust investor appetite for premium commercial property, especially properties backed by long-term revenue safety,” remarks Loh Lee Fen, CBRE Singapore’s head of commercial capital markets. “The softening of interest rates to their all-time lows since 2022 has better reinforced acquiring momentum,” she includes.
