CapitaLand Ascendas REIT Management Limited has announced the acquisition of two prime properties in Singapore for approximately S$700m. The properties, 9 Tai Seng Drive and 5 Science Park Drive, are fully leased to reputable tenants in the technology sector, enhancing the REIT’s income resilience and increasing its Singapore portfolio to 67% of total assets under management.
The acquisitions are strategic moves to strengthen CapitaLand Ascendas REIT’s (CLAR) foothold in Singapore, a key market for the REIT’s multi-asset portfolio. William Tay, Executive Director and CEO of the REIT Manager, stated, “These strategic additions will increase the share of Singapore in CLAR’s portfolio to approximately 67% of total assets under management.”
Both properties are modern and well-located, with 9 Tai Seng Drive being a Tier III colocation data centre and 5 Science Park Drive serving as a premium business space. The properties are expected to contribute positively to long-term returns, with potential for organic growth through rental uplifts and asset enhancement opportunities. The acquisitions are also expected to be accretive to the distribution per unit (DPU) for unitholders, with a projected DPU accretion of 1.36% for the financial year ended 31 December 2024.
The acquisition of 9 Tai Seng Drive will expand CLAR’s data centre assets under management by 32.8%, whilst 5 Science Park Drive will reinforce its market leadership in the Singapore Business Space and Life Sciences segment. Both properties are fully committed, with 5 Science Park Drive serving as the regional headquarters for Shopee, a major e-commerce platform.
These acquisitions align with CLAR’s strategy to leverage global growth trends in technological advancement and digital transformation, diversifying and strengthening its customer base.
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