Following the completion of the proposed deals, Clar will own 226 properties in total

 

[SINGAPORE] The manager of CapitaLand Ascendas Reit (Clar) announced on Monday (Aug 18) the proposed divestments of five Singapore properties.    

 

These divestments are being proposed at &ldquo healthy premiums&rdquo of about 6 per cent over the properties&rsquo total market valuation and 20 per cent over the original purchase price, for a total sale consideration of S$329 million, said the manager in a bourse filing.

 

This follows Clar&rsquo s target of about S$300 million to S$400 million in divestments in Singapore, Europe, the US and Australia this year.

 

The Business Times understands the assets were acquired by an EZA Hill-led consortium. The portfolio transaction was brokered by CBRE&rsquo s industrial and logistics team, who declined to comment on the specifics of the deal.

 

The estimated net proceeds after divestment costs are expected to be S$313.1 million. The divestments are expected to be completed within the fourth quarter of 2025.

 

&ldquo Building on a stellar 2024, we are seeing sustained momentum in Singapore&rsquo s industrial real estate sector,&rdquo said CBRE&rsquo s head of Singapore industrial capital markets Loh Lee Fen in response to BT. &ldquo The Singapore dollar&rsquo s strength and a favourable lending environment, including a declining Sora (Singapore Overnight Rate Average), are key contributors to this positive trend.&rdquo

 

Clar has announced a total aggregate value of S$355.5 million of divestments year to date.

 

Three of the properties are logistics properties, while the remaining two are industrial properties.

 

The proposed divestments are in line with the manager&rsquo s &ldquo proactive capital recycling strategy&rdquo and aim to &ldquo improve the quality&rdquo of the Clar portfolio and optimise returns for unitholders, said the filing.

 

The manager is entitled to a divestment fee of 0.5 per cent of the sale considerations of the properties, paid in cash.

 

Following the completion of the proposed divestments, Clar will own 226 properties in total &ndash 93 properties in Singapore, 34 properties in Australia, 49 properties in the US and 50 properties in the UK and Europe.

 

Clar posted a lower first-half revenue on Aug 4, which was down 2 per cent year on year at S$754.8 million. This was mainly due to the divestment of five properties in Australia, Singapore and the US, as well as the decommissioning of a property in the UK for redevelopment in June 2024.  

 

It also announced the launch of its first logistics developments in the UK at an estimated total investment cost of S$350.1 million on Aug 11.

 

The manager of CapitaLand Ascendas REIT (CLAR) has announced the completion of the acquisition of the data centre at 9 Tai Seng Drive.

 

The REIT has used 55.1% of gross proceeds of its $500 million private placement to fund the proposed acquisition. The amount of proceeds used is about $275.5 million.

 

Last week, the REIT announced that it used $137.1 million of gross proceeds from the $500 million private placement to partially finance the proposed acquisition of the property at 5 Science Park Drive.

 

The remaining $81.6 million of gross proceeds will be used for debt repayment purposes and $5.0 million to pay the estimated fees and expenses in relation to the private placement.

 

The REIT has a balance of $800,000 that has not yet been utilised, however as at the date of announcement, the manager says that it has re-allocated and utilised the aggregate balance of to partially finance the proposed acquisition in the property 9 Tai Seng Drive.