CapitaLand Ascendas REIT (CLAR) is acquiring three fully occupied industrial and logistics properties in Singapore for about S$565.8 million ($438 million), its manager said Tuesday.
The assets include 2 Pioneer Sector 1 (ramp-up logistics), Tuas Connection (light industrial), and 9 Kallang Sector (high-spec industrial). CLAR will acquire the portfolio from Vita Partners and expects to complete the deal by the first quarter of 2026.
The target properties are well-located in key industrial estates in Singapore, close to infrastructure networks, such as airports and seaports. They are also easily accessible via expressways and public transportation, per the announcement.
CapitaLand Ascendas REIT Management Limited, CLAR’s manager, said the properties are leased to 19 tenants across technology, logistics, and life sciences, with a weighted average lease expiry of about 5.5 years and annual rent escalations of 1%–5%.
The portfolio’s first-year net property income yield is estimated at 6.4% before costs and 6.1% after costs. On a pro forma basis, the deal would lift its 2024 distribution per unit by 0.124 Singapore cents, or 0.8%.
“This strong lease profile is a rare and attractive opportunity in Singapore’s industrial property market and will enhance the resilience of CLAR’s income stream,” said William Tay, executive director and CEO of the manager.
The purchases will raise the value of CLAR’s Singapore portfolio to about S$12.3 billion, or 68% of assets under management, per the announcement.
CLAR is Singapore’s first and largest listed business space and industrial real estate investment trust, having debuted on the Singapore Exchange in November 2002.
As of June 30, 2025, the trust managed S$16.8 billion in assets, comprising 229 properties across three segments: Business Space & Life Sciences, Industrial & Data Centres, and Logistics.
Its portfolio spans Singapore, the United States, Australia, and Europe, supporting a diverse tenant base of about 1,790 local and international companies.
In August, CLAR said it will divest five industrial and logistics properties in Singapore for S$329 million (about $243.5 million) to unrelated third parties as part of its capital recycling strategy.
It also sold a US business space property, Parkside in Portland, for S$26.5 million in June, about 45% above its valuation.
