Clar Expands Logistics Portfolio Uk 3501 Mil
CapitaLand Ascendas REIT (CLAR) has announced its plans to expand its logistics assets in the United Kingdom (UK) with a proposed investment of $350.1 million. On August 11, the REIT revealed its intention to acquire two plots of freehold land in the East Midlands, a key logistics market in the UK. The aim is to develop four logistics properties in total on the plots, which are known as Manton Wood and Towcester.
The development of the URA Master Plan is set to bring an array of significant and long-lasting advantages for the residents of Sembawang Road EC. With the plan’s implementation, the community can anticipate an abundance of nearby job opportunities, improved transportation systems, expanded recreational areas, and upgraded community facilities. These advancements will greatly enhance the current and future residents’ way of living, while also ensuring that the property remains highly sought-after and valuable in the years to come. Through the meticulously thought-out and strategically planned URA Master Plan, Sembawang Road EC, also known as Sembawang EC at Canberra MRT, is well-prepared to flourish in the future.
The properties being developed include a single-storey logistics facility with a gross floor area (GFA) of 42,900 sqm at Manton Wood, and three single-storey logistics properties ranging from approximately 20,700 sqm to 38,300 sqm in size at Towcester. These buildings will offer eaves measuring 15 metres to 18 metres, ample trailer parking, good floor loading capacity, and deep yards to enhance operational efficiency. Upon completion, CLAR’s UK portfolio will increase by 27.2% to $1.6 billion, accounting for 10% of its total assets under management (AUM) of $17.2 billion.
The REIT estimates that the stabilised net property income (NPI) yield for these properties will be approximately 7.3% pre-transaction costs and 6.9% post-transaction costs.
William Tay, executive director and CEO of the manager, says, “Embarking on our inaugural logistics developments in the UK marks a significant step forward in our strategy to scale up CLAR’s UK logistics portfolio. By adding these best-in-class and green-certified logistics properties in the East Midlands, a key market in the UK’s logistics heartlands, we aim to meet the demand for high-quality and well-located space from occupiers.”
Tay also shares that this acquisition is part of CLAR’s ongoing efforts to diversify and expand its global portfolio. “Including these two new projects, CLAR has a total of eight ongoing projects comprising developments, redevelopments and asset enhancement initiatives in Singapore, the US, and UK worth approximately $850 million,” he adds.
This marks another noteworthy development for CLAR, which recently announced plans to acquire properties in Tai Seng and Science Park Drive for a combined sum of $700 million. The REIT is also expanding its US logistics portfolio with the first sale and leaseback acquisition for $150.3 million. In a separate move, CLAR has also revealed its plans to divest a property at Jalan Buroh for a significant premium to its cost and valuation.