CapitaLand Ascendas REIT (CLAR) has announced the divestment of the Kim Chuan Telecommunications Complex in Singapore for approximately S$200.4m. This sale price is double the original purchase price of S$100m from March 2005 and represents a 32% premium over the property’s independent market valuation of S$151.8m as of 30 June 2026.
The divestment aligns with CLAR’s strategy of portfolio optimisation and capital recycling, as highlighted by CEO William Tay. He stated, “This divestment underscores our disciplined approach to portfolio optimisation and capital recycling. It will enhance CLAR’s financial flexibility to invest in accretive opportunities and strengthen the quality of the portfolio.”
The net proceeds from the sale, estimated at S$180m after divestment costs, are expected to be used for various purposes, including financing committed investments, reducing debt, and potentially making distributions to Unitholders. If used to repay borrowings, CLAR’s pro forma aggregate leverage would decrease to approximately 41.4% from 42.0% as of 31 March 2026.
The 10-storey data centre, with a gross floor area of 35,456 square metres, was occupied by a single tenant until April 2026. The divestment is anticipated to be completed by the second half of 2026 and is not expected to materially impact CLAR’s net asset value or distribution per unit for the financial year ending 31 December 2026.
