CapitaLand Ascendas REIT has acquired a 100% interest in 25 Loyang Crescent, a transaction facilitated by CBRE’s Industrial Capital Markets team. This acquisition underscores Singapore’s appeal as a stable investment hub, driven by its robust economic fundamentals and political stability, according to Loh Lee Fen, Head of Industrial Capital Markets at CBRE.
The acquisition comes at a time when interest rates have softened to their lowest levels since 2022, enhancing buying momentum in the market. Loh highlighted the strong investor appetite for high-quality industrial real estate, particularly those assets offering long-term income security. “Well stabilised assets with good tenant covenant and long leases are popular given the resilience and clarity of income they provide in today’s environment,” she noted.
This move by CapitaLand Ascendas REIT reflects a broader trend of investors seeking stable and reliable income streams amidst fluctuating economic conditions. The acquisition of 25 Loyang Crescent is expected to further solidify the REIT’s portfolio, providing a steady income flow and reinforcing its position in the industrial real estate sector.
As interest rates remain low, the demand for industrial properties with strong tenant covenants and long leases is likely to continue, potentially leading to more acquisitions in the sector. This trend highlights the ongoing attractiveness of Singapore’s industrial real estate market to both local and international investors.
