CapitaLand Ascendas REIT is acquiring a 100% interest in 25 Loyang Crescent, a cluster of ramp-up logistics and industrial buildings, for S$504 million, and a 50% interest in Ascent, a premium business space property at 2 Science Park Drive, for S$245 million in Singapore. A global sovereign wealth fund will acquire the remaining 50% interest in Ascent.
The REIT is entering Japan through the acquisition of a 49% interest in a Tier III hyperscale data centre in Greater Osaka for S$620.7 million (76.4 billion yen), it said in a release. The remaining interest in the data centre is held by a fund managed by Mitsui & Co. Realty Management Ltd, a subsidiary of Japan’s leading conglomerate Mitsui & Co. Ltd.
These acquisitions support the manager’s portfolio rejuvenation strategy, enhancing CLAR’s earnings resilience and overall portfolio quality.
On a pro forma basis, the three acquisitions are expected to be distribution per unit (DPU)-accretive. Assuming completion on 1 January 2025, the DPU accretion is estimated at approximately 0.318 Singapore cents, or 2.1%. Each acquisition is also expected to be DPU-accretive on a standalone basis.
“CLAR’s entry into Japan reflects our disciplined approach to scaling and diversifying our global data centre portfolio across key established digital hubs with strong connectivity and demand,” said William Tay, CEO of CapitaLand Ascendas REIT Management Limited.
“This strategic diversification allows CLAR to tap new growth opportunities while maintaining the disciplined approach that has always guided our investment and portfolio management,” Tay added.
