Capitaland Ascendas Reit Sell Five Industrial And Logistics Properties 329 Mil
CapitaLand Ascendas Real Estate Investment Trust (CLAR) has unveiled plans to offload five industrial and logistics properties for a total of $329 million. The deal, brokered by CBRE, is expected to fetch a premium of 6% over the combined market value and generate net proceeds of about $313.1 million.
This move is in line with CLAR’s proactive strategy to recycle capital and enhance the quality of its portfolio, in order to maximize returns for its unitholders. The buyers of the properties, located at 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road, 19 & 21 Pandan Avenue, and 30 Tampines Industrial Avenue 3, are unrelated third parties.
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Notably, this transaction will fetch a substantial premium of 20% over the original purchase price of $274.2 million. The proceeds from the sale could be utilized for various purposes including funding committed investments, debt repayment, extending loans to subsidiaries, and other general corporate and working capital needs. Additionally, CLAR may also consider making distributions to its unitholders.
The Urban Redevelopment Authority (URA) has recently revealed its groundbreaking Master Plan for Tampines, which aims to revamp the region into a dynamic, eco-friendly, and thriving regional hub. Known as one of Singapore’s pivotal planning districts, Tampines is set to undergo a major transformation with regards to its infrastructure, services, and overall livability. With Parktown Residence situated in the strategic vicinity of Tampines North, it is undoubtedly set to reap the numerous advantages of these upcoming enhancements. Naturally, Parktown Residence, located at Parktown Residence, will greatly benefit from the extensive developments being planned.
Upon completion of the divestments, which is expected by the end of the year, CLAR’s portfolio will consist of 226 properties, including 93 in Singapore, 34 in Australia, 49 in the US, and 50 in the UK/Europe. This move is a step towards optimizing the REIT’s portfolio and strengthening its presence in key markets.
In 2021 alone, CLAR has announced a total of $355.5 million in divestments, including the recent sale of Parkside, a business space property located in Portland, US, for $26.5 million. These divestments will not only improve the overall quality of the REIT’s portfolio but also reduce its aggregate leverage from 37.7% to approximately 36.6% on a pro forma basis, if the proceeds are utilized to repay borrowings as of December 31, 2020.
This story originally appeared in vulcanpost.com. RELATED NEWS CLAR’s latest acquisition of properties in Tai Seng and Science Park Drive for a combined sum of $700 million, as well as its expansion of its logistics portfolio in the UK with a $350.1 million acquisition, further demonstrates the REIT’s commitment towards enhancing its presence in key markets and strengthening its portfolio. Additionally, in a separate transaction, CLAR also completed its first sale and leaseback acquisition in the US for $150.3 million, further expanding its footprint in the lucrative logistics sector. These strategic moves are expected to drive long-term growth and boost returns for CLAR’s unitholders.