CapitaLand Ascendas REIT (CLAR) is expanding its footprint in Singapore and Japan through a S$1.4bn (€940m) acquisition of three logistics and data centre assets.
CLAR is buying a cluster of ramp-up logistics and industrial buildings at 25 Loyang Crescent for S$504.2m and a 50% interest in Ascent, a premium business space property at 2 Science Park Drive for S$245m. CLAR said a global sovereign wealth fund would acquire the remaining 50% interest in Ascent.
It said these acquisitions reinforced CLAR’s commitment to Singapore as the cornerstone of its portfolio, with 66% of its assets, valued at about S$13.2bn located in its home market.
The trust is also acquiring a 49% interest in a Tier III hyperscale data centre in Greater Osaka for JPY76.4bn (€419m). The remaining interest in the data centre is held by a fund managed by Mitsui & Co Realty Management.
It is launching a preferential offering to raise S$900m, with nearly S$500m to be used to part-finance the acquisitions.
William Tay, CEO and executive director of CapitaLand Ascendas REIT Management, CLAR’s manager, said: “These assets strengthen our presence in Singapore, where we have strong market leadership in business space and life sciences as well as logistics, while expanding into developed markets such as Japan with healthy market fundamentals and demand drivers.”
Tay added: “This strategic diversification allows CLAR to tap new opportunities for growth while maintaining the disciplined approach that has always guided our investment and portfolio management.”
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