CapitaLand Ascendas REIT proposes to acquire three industrial and logistics properties in Singapore for $565.8 mil
According to the acquisitions, CLAR’s trustee has participated in conditional put and call choice agreements with DBS Trustee Limited for 2 Pioneer Sector 1 and Tuas Connection. DBS Trustee is the trustee of Supreme REIT.
CLAR’s trustee has actually also become part of 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 registered owner of the property located at 9 Kallang Sector.
” These accretive purchases set up on our recent acquisitions of a Tier III colocation information centre and a premium business place property that were finished in August,” states William Tay, executive director and chief executive officer of CLAR’s manager.
Must the acquisitions be finished on Jan 1, 2024, CLAR’s DPU is expected to enhance by around 0.124 cents or 0.8% for the FY2024 finished Dec 31, 2024 on a pro forma basis.
The proposed purchase is assumed to be accretive to CLAR’s distribution per unit (DPU). The anticipated very first year net property yield is about 6.4% pre-transaction costs and 6.1% post-transaction expenses.
CapitaLand Ascendas REIT (CLAR) is suggesting to acquire three real properties in Singapore for an absolute consideration of $565.8 million, that includes the estimated upfront land and enhancement costs of $33.2 million. The aggregate market value of the account is individually price at approximately $589 million.
He includes that the properties’ “sturdy lease account” is a “unusual and appealing opportunity” in Singapore’s industrialized property market and will “boost the durability of CLAR’s revenue flow.”
The account, which consists of a four-storey ramp-up logistics real estate 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, will grow the worth of CLAR’s Singapore account to around $12.3 billion. Upon the completion of the acquisition around 1Q2026, CLAR’s Singapore account are going to represent 68% of its complete assets under management (AUM).
The ideal properties are fully filled by 19 renters with a long weighted average lease expiry (WALE) of about 5.5 years. These tenants are openly listed business and multinational companies in industries including electronic devices & semiconductors, transport & logistics, precision manufacturing in addition to drugs & life sciences. CLAR also expects rental growth opportunities with rental escalations in a lot of the leases ranging from 1% to 5% per annum. In-place rents are about 15% below market rents, mentions the REIT executive in its Oct 7 announcement.
