CapitaLand Ascendas REIT Management Limited has announced the acquisition of three industrial and logistics properties in Singapore for approximately $412.5m (S$565.8m). The properties, located in key industrial hubs, are fully occupied by tenants from the technology, logistics, and life sciences sectors. This strategic move is part of the REIT’s plan to invest $947.5m (S$1.3b) in Singapore by 2025, with the acquisitions expected to complete by the first quarter of 2026.
The properties include 2 Pioneer Sector 1, a ramp-up logistics facility; Tuas Connection, a light industrial property; and 9 Kallang Sector, a high-specifications industrial site. William Tay, Executive Director and CEO of the REIT’s manager, highlighted that these acquisitions are accretive and enhance the resilience of the REIT’s income stream due to the strong lease profile and built-in rental escalations.
Strategically located near major infrastructure such as airports and seaports, these properties are expected to increase the value of CapitaLand Ascendas REIT’s Singapore portfolio to approximately $8.96b (S$12.3b), accounting for 68% of its total assets under management. The acquisition is set to be DPU-accretive, with an expected first-year net property income yield of 6.1% post-transaction costs.
The acquisition was negotiated at a 3.9% discount to the total valuation of $428.9m (S$589m), with the total investment cost estimated at $431.3m (S$592.6m), including transaction-related fees. The REIT plans to finance the acquisition through internal resources and existing debt facilities.
