Clar Expands Logistics Portfolio Uk 3501 Mil
Capitaland Ascendas REIT (CLAR) has recently announced plans to expand its logistics assets in the United Kingdom for a total of $350.1 million. The REIT, on Aug 11, announced its intention to acquire two plots of freehold land in the East Midlands, a highly desirable logistics market in the UK. These plots, known as Manton Wood and Towcester, will be developed into four logistics properties by CLAR.
At Manton Wood, CLAR plans to develop a single-storey logistics property with a gross floor area (GFA) of 42,900 square meters. In Towcester, three single-storey logistics properties ranging from approximately 20,700 square meters to 38,300 square meters will be built. These properties will feature eaves measuring 15 meters to 18 meters and will have ample trailer parking, good floor loading capacity, and deep yards for efficient operations.
With these acquisitions, CLAR’s UK portfolio is set to increase by 27.2% to a total value of $1.6 billion. This will also account for 10% of CLAR’s total assets under management (AUM) of $17.2 billion.
According to the REIT, the expected stabilised net property income (NPI) yield for these properties is around 7.3% pre-transaction costs and 6.9% post-transaction costs.
William Tay, executive director and CEO of the manager, says, “Building on our strategy to scale up CLAR’s UK logistics portfolio, this marks a significant step forward as we embark on our first logistics developments in the UK. These high-quality, green-certified logistics properties will further enhance our presence in the East Midlands, a key market in the UK’s logistics heartlands. We are confident these developments will meet the demand from occupiers for well-located and top-quality space.”
With the addition of these two projects, CLAR now has eight ongoing projects, including developments, redevelopments, and asset enhancement initiatives, in Singapore, the US, and the UK, with a combined value of approximately $850 million. Tay adds, “We remain committed to our strategy of constantly improving and expanding CLAR’s portfolio, and these new acquisitions are a testament to our dedication to delivering value to our unitholders.”
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