-- CapitaLand Ascendas REIT continues to optimise its portfolio returns with the divestments of five industrial and logistics properties in Singapore for S$329.0 million. The divestments are at approximately 6% premium over the properties’ total market valuation and a 20% premium to the total original purchase price. The divestments of the five properties, namely 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road, 19 & 21 Pandan Avenue and 30 Tampines Industrial Avenue 3 as pictured, are expected to complete within 4Q 2025.
CapitaLand Ascendas REIT Management Limited, as the manager (the “Manager”) of CapitaLand Ascendas REIT (“CLAR”), is pleased to announce the proposed divestments of five industrial and logistics properties (“Proposed Divestments”) in Singapore (collectively, the “Properties”) to unrelated third parties for a total sale consideration of S$329.0 million (“Sale Consideration”). The Properties are 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road and 19 & 21 Pandan Avenue, as well as 30 Tampines Industrial Avenue 3.
The Sale Consideration represents a premium of approximately 6% over the total market valuation of the Properties of S$311.3 million and a 20% premium to their total original purchase price of S$274.2 million.
The Proposed Divestments are in line with the Manager’s proactive capital recycling strategy to improve the quality of CLAR’s portfolio and optimise returns for unitholders of CLAR.
The estimated net proceeds after divestment costs are expected to be S$313.1 million. The net proceeds may be utilised for various purposes, including financing committed investments, paying down debt, extending loans to subsidiaries, funding general corporate and working capital needs, and/or making distributions to Unitholders.
For the purpose of calculating the pro forma impact on CLAR’s aggregate leverage, if the net proceeds were used to repay CLAR’s borrowings as at 31 December 2024, its aggregate leverage would have reduced from 37.7% to approximately 36.6%.
The Proposed Divestments are expected to be completed within the fourth quarter of 2025. Following the completion of the Proposed Divestments, CLAR will own 226 properties comprising 93 properties in Singapore, 34 properties in Australia, 49 properties in the United States (US) and 50 properties in the United Kingdom/Europe.
In accordance with the trust deed dated 9 October 2002 constituting CLAR (as amended, varied, and/or supplemented from time to time), the Manager is entitled to a divestment fee of 0.5% of the Sale Consideration of the Properties, which will be paid in cash.
The Proposed Divestments follow the sale of Parkside, a business space property in Portland, the US, for S$26.5 million, which was completed in June 2025. The sale price of Parkside reflected a premium of approximately 45% to the market valuation of S$18.25 million1 as at 31 December 2024.
To date, CLAR has announced a total aggregate value of S$355.5 million of divestments in 2025.
Assuming the Proposed Divestments and the sale of Parkside had been completed on 1 January 2024, the pro forma impact on CLAR’s net property income and DPU for the financial year ended 31 December 2024 would be a decrease of approximately S$21.6 million and 0.399 Singapore cents, respectively. They are not expected to have any material impact on CLAR’s net asset value and distribution per Unit (“DPU”) for the financial year ending 31 December 2025.
Divestment of a Portfolio of Four Properties
HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of CLAR (the “Trustee”), has entered into put and call option agreements with an unrelated third party for the proposed divestment of 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road and 19 & 21 Pandan Avenue in Singapore. The total sale consideration of S$306.0 million, which was negotiated on a willing-buyer and willing-seller basis, represents a premium of approximately 6% over the total market valuation of S$289.3 million and a 21% premium to their total original purchase price of S$252.2 million.
The portfolio comprises one industrial and three logistics properties with a total gross floor area (“GFA”) of 186,346 square metres (“sq m”). The weighted average remaining land lease tenure of the Properties is approximately 27 years while the weighted average lease expiry2 (“WALE”) is about 1.6 years as of 30 June 2025.
Summary of Properties
Divestment of 30 Tampines Industrial Avenue 3
The Trustee has entered into a sale and purchase agreement with an unrelated third party for the proposed divestment of 30 Tampines Industrial Avenue 3 in Singapore. The sale consideration of S$23.0 million, which was negotiated on a willing-buyer and willing-seller basis, represents a premium of approximately 5% over both the market valuation of S$22.0 million as at 30 June 20257 and the original purchase price of S$22.0 million.
30 Tampines Industrial Avenue 3 is an industrial property comprising a two-storey high-specifications building with a total GFA of 9,593 sq m. The property has a remaining land lease tenure of approximately 38 years. The property is currently unoccupied.
Footnotes:
1. The valuation for Parkside was commissioned by the Manager and the Trustee, and was carried out by National Property Valuation Advisors, Inc. using the income approach and sales comparison approach.
2. By monthly gross rental income.
3. The valuation for the Property was commissioned by the Manager and the Trustee, and was carried out by Edmund Tie & Company (SEA) Pte Ltd using the capitalisation, discounted cash flow and direct comparison methods.
4. The valuation for the Property was commissioned by the Manager and the Trustee, and was carried out by Cushman & Wakefield VHS Pte Ltd using the capitalisation, discounted cash flow and direct comparison methods.
5. The valuation for the Property was commissioned by the Manager and the Trustee, and was carried out by Edmund Tie & Company (SEA) Pte Ltd using the capitalisation, discounted cash flow and direct comparison methods.
6. The valuation for the Property was commissioned by the Manager and the Trustee, and was carried out by Cushman & Wakefield VHS Pte Ltd using the capitalisation, discounted cash flow and direct comparison methods.
7. The valuation for the Property was commissioned by the Manager and the Trustee, and was carried out by Edmund Tie & Company (SEA) Pte Ltd using the capitalisation, discounted cash flow and direct comparison methods.
Release ID: 89168096
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