CapitaLand Ascendas Reit to acquire 3 Singapore properties for about S$565.8 million

It will increase the value of Clar’s portfolio in the Republic to around S$12.3 billion

The manager of CapitaLand Ascendas Reit (Clar) on Tuesday (Oct 7) announced the proposed acquisition of three Singapore properties from Vita Partners for a total consideration of about S$565.8 million.

Their price tag includes estimated upfront land and enhancement premiums of S$33.2 million, with the acquisitions expected to be completed by the first quarter of 2026. It is a 3.9 per cent discount to the total valuation of S$589 million.

The properties to be acquired consist of 2 Pioneer Sector 1, a ramp-up logistics property; Tuas Connection, a light industrial property; and 9 Kallang Sector, a high-specifications industrial property.

The distribution per unit would have risen about S$0.00124 or 0.8 per cent for the 2024 financial year, assuming the acquisitions had been completed at the start of the year and funded with 40 per cent debt and 60 per cent equity.

“These accretive acquisitions build on our recent acquisitions of a Tier III co-location data centre and a premium business space property which were completed in August 2025,” said William Tay, executive director and chief executive officer of the manager. “This strong lease profile is a rare and attractive opportunity in Singapore’s industrial property market.”

Clar is expected to incur an estimated total investment cost of S$592.6 million, including the acquisition fee of about S$5.7 million, stamp duty and other transaction-related fees and expenses of about S$21.1 million. It will be financed through a combination of internal resources and existing debt facilities, if required.

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The properties are fully occupied by tenants in the technology, logistics and life sciences industries, with a weighted average lease expiry of 5.5 years and built-in rental escalations, ranging from 1 to 5 per cent per annum. The in-place rents are about 15 per cent below current market rents.

The acquisitions will increase the value of Clar’s Singapore portfolio to about S$12.3 billion, which will account for 68 per cent of the real estate investment trust’s total assets under management as at Jun 30, 2025. It now has a total investment of about S$1.3 billion in 2025.

The expected first-year net property income yield of the three properties is about 6.4 per cent of pre-transaction costs and 6.1 per cent of post-transaction costs.

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Its units ended Monday flat at S$2.85.