CapitaLand Ascendas Reit buys two Singapore industrial assets and Japan data centre for $1.4 bil
The acquisition of the data center notes the Reit’s initial foray into Japan. “CLAR’s new expansion in to Japan shows our disciplined approach to scaling and diversifying CLAR’s global data center portfolio throughout essential well-known electronic centers with solid demand vehicle drivers and connectivity,” mentions William Tay, CEO and executive director of CLAR’s manager.
The 3rd and remaining property is a Tier III hyperscale data center in Greater Osaka, Japan, by which the Reit is acquiring a 49% interest for $620.7 million. A fund taken care of by Mitsui & Co Realty Management, a subsidiary of Mitsui & Co, keeps the standing interest in the data hub.
Two of the assets operate in Singapore. CLAR is getting a 100% risk in 25 Loyang Crescent, a cluster of ramp-up logistics and industrial facilities, for $504.2 million, including an upfront land costs of $46.35 million.
Lentor Gardens Residences floor plan
CapitaLand Ascendas Reit (CLAR) has already declared the procurement of 3 industrial properties throughout Singapore and Japan for $1.4 billion.
It is also obtaining a 50% interest rates in Ascent, a business park at 2 Science Park Drive, for $245 million. A global sovereign wealth fund is getting the staying 50% rate of interest in Ascent, adds CLAR in a March 24 release.
The sale of 25 Loyang Crescent to CLAR was brokered by CBRE. “We continue to see robust capitalist hunger for top quality industrial property, particularly properties backed by long-term revenue safety,” remarks Loh Lee Fen, CBRE Singapore’s head of commercial capital markets. “The conditioning of interest rates to their lowest levels since 2022 has actually further enhanced acquiring momentum,” she adds.
The three procurements are anticipated to be distribution per unit (DPU)-accretive for CLAR, on a pro forma basis. The DPU increase is estimated to be approximately 0.318 cents or 2.1%, thinking all 3 procurements were finished on Jan 1, 2025.
Nevertheless, Singapore stays the cornerstone of CLAR’s profile, the Reit states. With the acquisition of 25 Loyang Crescent and Ascent, CLAR’s Singapore account will certainly raise to around $13.2 billion, standing for 66% of the Reit’s total portfolio assets under management of $19.9 billion.
The total procurement outlay is estimated at $1.41 billion, consisting of the aggregate purchase point, the procurement charges owed to CLAR’s supervisor, and various other transaction-related costs. To aid money the purchase, CLAR has released a private placement and preferential offering targeted at raising gross proceeds of a minimum of $900 million.
