Capitaland Ascendas Reit Acquire Properties Tai Seng And Science Park Drive 700 Mil

$700 million acquisition for CLARBy William Tay, executive director and CEO of CapitaLand Ascendas REIT (CLAR)Proposed purchase of 9 Tai Seng Drive and 5 Science Park Drive to deepen REIT’s exposure to technology sector in Singapore. Purchase consideration for both properties amounts to $700 million, including fees.CLAR plans to finance the acquisitions through a mix of equity fund raising and debt financing. The REIT also intends to raise $500 million through a private placement to institutional, accredited and other investors at an issue price of between $2.465 and $2.515 per new unit. Upon completion, the acquisitions will increase CLAR’s Singapore portfolio value by 6.6% to around $11.7 billion and account for 67% of its total assets under management (AUM) of $17.6 billion.Both properties are fully leased and expected to contribute positively to long-term returns with potential for organic growth through rental uplifts and asset enhancement opportunities. The estimated first year NPI yield for 9 Tai Seng Drive stands at 7.2% pre-transaction costs and 7.1% post-transaction costs while 5 Science Park Drive has a NPI yield of around 6.1% pre-transaction costs and 5.7% post-transaction costs, excluding deferred consideration of $30 million. The acquisitions are also expected to improve CLAR’s distribution per unit (DPU) by 0.188 cents or 1.24% for 9 Tai Seng Drive and 0.021 cents or 0.14% for 5 Science Park Drive on a pro forma basis, with an accretive DPU of 0.038 cents or 0.25% for 5 Science Park Drive accounting for rental reversion and deferred consideration potential. Both properties have remaining land lease tenures of 30 years and 56 years respectively with good sustainability ratings. 9 Tai Seng Drive is BCA-IMDA Green Mark Platinum certified while 5 Science Park Drive is BCA Green Mark Platinum certified. 9 Tai Seng Drive is valued at $465.5 million and 5 Science Park Drive is valued at $263.5 million as at May 15. The proposed acquisitions will be deemed as an interested person transaction (IPT) under the Singapore Exchange’s (SGX) listing rules and are expected to be completed by early 2022. CLAR’s latest acquisition reinforces its position in Singapore as the cornerstone of its multi-asset portfolio in matured, developed markets.

CapitaLand Ascendas REIT (CLAR) is set to expand its presence in Singapore with the proposed acquisition of two prime properties for a combined purchase consideration of $700 million. The properties, 9 Tai Seng Drive and 5 Science Park Drive, will be acquired from joint owners CapitaLand Development and CapitaLand Data Centre Trust. The acquisitions will increase CLAR’s Singapore portfolio by 6.6% to around $11.7 billion and account for 67% of its total assets under management (AUM) of $17.6 billion. According to William Tay, executive director and CEO of CLAR’s manager, the proposed acquisitions will strengthen the REIT’s exposure to the technology sector in Singapore. 9 Tai Seng Drive, a Tier III colocation data centre, will be acquired for an estimated consideration of $471 million, while 5 Science Park Drive, a premium business space property, will be acquired for $245 million. Both properties are expected to contribute positively to long-term returns and have remaining land lease tenures of 30 years and 56 years respectively. They also have good sustainability ratings, with 9 Tai Seng Drive being BCA-IMDA Green Mark Platinum certified and 5 Science Park Drive being BCA Green Mark Platinum certified. The acquisitions will be funded through a mix of equity fund raising and debt financing. Additionally, CLAR plans to raise $500 million through a private placement to institutional, accredited and other investors at an issue price of between $2.465 and $2.515 per new unit. Upon completion of the acquisitions, CLAR’s distribution per unit (DPU) is expected to improve by 0.188 cents or 1.24% for 9 Tai Seng Drive and 0.021 cents or 0.14% for 5 Science Park Drive on a pro forma basis. The proposed acquisitions are subject to approval by SGX and are expected to be completed by early 2022.

CapitaLand Ascendas REIT (CLAR) is looking to strengthen its presence in Singapore with the acquisition of two prime properties for a total cost of $700 million. The properties, 9 Tai Seng Drive and 5 Science Park Drive, will be acquired for a combined purchase consideration of $700 million, including fees. The proposed acquisitions will deepen CLAR’s exposure to the technology sector in Singapore and increase its portfolio value by 6.6% to around $11.7 billion. With a mix of equity fund raising and debt financing, CLAR expects organic growth potential from both properties, which are fully leased and have remaining land lease tenures of 30 years and 56 years respectively. The acquisitions are also expected to be accretive to CLAR’s distribution per unit (DPU), with an estimated DPU increase of 0.188 cents or 1.24% for 9 Tai Seng Drive and 0.021 cents or 0.14% for 5 Science Park Drive on a pro forma basis. Upon completion of the acquisitions, CLAR’s Singapore portfolio will account for 67% of its total assets under management (AUM) of $17.6 billion. The proposed acquisitions are subject to approval by SGX and are expected to be completed by early 2022.

The URA Master Plan has a strong emphasis on enhancing transport connectivity, particularly in the outskirts such as Sembawang. Among the planned developments is the North-South Corridor (NSC), which will be the first integrated transport corridor in Singapore. This significant expressway will feature dedicated bus lanes, cycling paths, and pedestrian walkways, connecting the northern regions directly to the city center. For residents of Sembawang Road EC, the NSC will bring about quicker and more efficient travel options, reducing the travel time for both public and private transportation users. Additionally, with the upcoming Sembawang Road EC at Canberra MRT, residents can enjoy the benefits of the NSC, making commuting even more convenient and accessible.