Singapore’s CapitaLand Ascendas REIT said on Wednesday it will acquire a data centre and a premium business park property in the city-state for a combined S$700.2 million ($543.63 million).
The REIT said the acquisitions will increase the value of its Singapore portfolio by 6% to approximately S$11.7 billion. Both properties are fully leased to “reputable tenants”, the company added, guaranteeing stable and predictable income streams.
The data centre is being acquired at a 2.2% discount to its average independent market valuation as of May 15, while the business park asset is being bought at a 7% discount to its assessed value.
Investor appetite for data centre assets has surged in recent years, driven by the exponential growth in digital services, cloud computing and AI-related infrastructure needs, which promise long-term rental stability and strong yield potential.
With this deal, CapitaLand Ascendas REIT’s total property count will rise to 232, including 98 assets in Singapore.
Reuters
