CapitaLand Ascendas REIT (CLAR) is to invest about S$350.1m (€234m) to build four logistics assets, marking its entry into the UK development market.
The Singapore-listed trust has invested £56.4m (€65.1m) to acquire the Manton Wood in Nottinghamshire and Towcaster in Northampton West sites in the East Midlands from DHL Real Estate UK.
CLAR said it plans to develop four properties at Manton Wood and Towcester at a total investment cost of £203.5m, with construction due to begin next year and completion in 2027.
It has also acquired an additional site in the vicinity near Towcaster which is not for development but to satisfy a biodiversity net gain condition in the planning permission from local authorities to develop its Towcester logistics project.
William Tay, executive director and CEO of the manager, said embarking on its inaugural logistics developments in the UK marked a significant step forward in its strategy to scale up CLAR’s UK logistics portfolio.
“With positive structural drivers such as e-commerce and onshoring anticipated to sustain demand, these four new properties are set to boost the asset value of CLAR’s UK logistics portfolio by 43.5% to approximately S$1.2bn,” said Tay, adding that the expansion into development in the UK aligned with CLAR’s strategy to grow its logistics portfolio in the UK.
Once completed, the proposed developments will increase CLAR’s UK logistics portfolio to 42 investment properties. CLAR’s UK portfolio will also grow by 27.2% to approximately S$1.6bn, accounting for 10% of the trust’s total assets under management.
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