Prime Highlights :
- CLAR is acquiring two Singapore assets and making its first entry into Japan through a hyper-scale data centre in Greater Osaka.
- The three deals push CLAR’s portfolio past S$19.9 billion, backed by an equity fundraising of at least S$900 million.
Key Facts :
- The Loyang logistics asset is fully occupied on a 12-year triple-net lease with 2.5% annual rent escalation built in.
- Ascent, the Singapore business space asset, counts Johnson & Johnson, Dyson, and Merck among its tenants and is 90.7% occupied.
Background :
CapitaLand Ascendas REIT (CLAR) has made three acquisitions, which total a value of S$1.41 billion. The company acquired two assets in Singapore and entered Japan for the first time through a hyperscale data centre in Greater Osaka.
In Singapore, CLAR is acquiring a 100% interest in 25 Loyang Crescent, a logistics and industrial complex, for S$504 million, and a 50% interest in Ascent, a premium business space property at 2 Science Park Drive, for S$245 million. A global sovereign wealth fund will hold the remaining 50% in Ascent.
The Japan deal includes a 49% stake in a data centre in Greater Osaka worth S$620.7 million. The remaining stake is held by a fund managed by Mitsui & Co.
The Loyang logistics asset has complete occupancy through its 12-year triple-net lease agreement, which includes a 2.5% annual rent increase. The building achieves 90.7% occupancy because it houses tenants such as Johnson & Johnson, Dyson and Merck.
To fund part of this acquisition, CLAR has decided to raise equity, cumulatively S$900 million or above, through private placement and preferential offering. All three deals are expected to be distribution-per-unit accretive.
For institutional investors and real estate fund managers who monitor Asia-Pacific REIT activities, CLAR’s decision shows that investors now want to invest in digital infrastructure as much as they do in existing logistics operations, while Singapore-based investors find Japan to be an appealing investment destination.
