Capitaland Ascendas Reit Sell Five Industrial And Logistics Properties 329 Mil
CapitaLand Ascendas REIT (CLAR) has revealed its plans to sell five industrial and logistics properties for a total of $329 million, selling at a premium of 6% over the current market value. The deal was facilitated by CBRE.
The sale of these properties, located at 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road and 19 & 21 Pandan Avenue, as well as 30 Tampines Industrial Avenue 3, is expected to bring in net proceeds of approximately $313.1 million. This price also represents a 20% premium compared to the original purchase price of $274.2 million.
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The buyers of these properties are unrelated third parties. According to CLAR, the decision to divest these assets is part of their proactive capital recycling strategy, aimed at enhancing the quality of their portfolio and maximizing returns for their unitholders.
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With the upcoming sale, CLAR’s portfolio will consist of 226 properties including 93 in Singapore, 34 in Australia, 49 in the US, and 50 in the United Kingdom and Europe.
The net proceeds from the sale may be used for various purposes such as funding committed investments, paying down debt, extending loans to subsidiaries, funding general corporate and working capital needs, and making distributions to unitholders. If used to repay CLAR’s borrowings as of December 31, 2024, the company’s aggregate leverage is expected to decrease from 37.7% to approximately 36.6%.
The divestments are expected to be completed by the end of the year and so far, CLAR has announced a total of $355.5 million in divestments in 2025. This includes the recent sale of Parkside, a business space property in Portland, US, for $26.5 million.
This illustrates CLAR’s continuous efforts in optimizing their portfolio and ensuring sustained growth for their unitholders. The company’s successful divestments, along with their active investments in properties such as their recent acquisition of properties in Tai Seng and Science Park Drive for $700 million, solidify their position as a leading industrial and logistics real estate investment trust in Asia.