CapitaLand Ascendas REIT (CLAR) has bought a data centre and a business building in Singapore for approximately S$700m (€480m).
The facilities are Tier III colocation data centre, located in Tai Seng Industrial Estate, and the second asset is located at a key technology and R&D hub in Science Park. Both are fully leased.
In addition, 9 Tai Seng Drive, which is located close to CLAR’s two existing data centres, offers potential in the mid to long term for revenue growth via expansion of the existing IT capacity, including higher power usage, subject to obtaining the relevant approvals from the authorities, according to CLAR.
The deals are to be funded partly with proceeds from a proposed placement aiming to raise at least S$500m. The balance will be debt-funded.
William Tay, executive director and CEO of CapitaLand Ascendas REIT Management, said: “The acquisitions of 9 Tai Seng Drive and 5 Science Park Drive further anchor CLAR in Singapore. These strategic additions will increase the share of Singapore in CLAR’s portfolio to approximately 67% of total assets under management.”
The acquisitions will increase the value of its Singapore portfolio by 6.6% to around S$11.7bn. The trust’s data centre portfolio will be lifted to S$1.9bn, of which 54% will be in Singapore and the balance in the UK and Europe.
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