CapitaLand Ascendas Reit enters Spain with S$185.4 million logistics portfolio acquisition
This is expected to be distribution per unit accretive for unitholders
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[SINGAPORE] CapitaLand Ascendas Reit (Clar) made its maiden entry into the Spanish market, acquiring a portfolio of six Grade A logistics assets for S$185.4 million, the real estate investment trust’s (Reit) manager announced on Friday (Feb 27).
The portfolio comprises two logistics assets in Madrid and four in Barcelona.
The acquisition is expected to be distribution per unit (DPU) accretive for unitholders, the Reit manager said.
On a pro forma basis, assuming the deal had been completed on Jan 1, 2025, the DPU accretion is estimated at S$0.00014, representing a 0.1 per cent increase.
The S$185.4 million price represents a 5.9 per cent discount to the portfolio’s independent market valuation of S$197 million as at Oct 31, 2025.
The manager noted that the first-year net property income yield is expected to be 6.3 per cent before transaction costs and 6.5 per cent after costs.
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Strategic push into Spain
The portfolio comprises 98,825 square metres of Grade A space.
The two assets in Madrid are located in Torrejon de Ardoz, along the A-2 highway. They are within 15 minutes of the city’s international airport.
The four assets in Barcelona are located in Sant Feliu de Buixalleu and sit near the AP-7 motorway, a key transport artery in Spain.
The portfolio is fully occupied, and features a weighted average lease to expiry of 9.1 years with index-linked rental adjustments.
“Our first acquisition in Spain deepens Clar’s presence in the United Kingdom/Europe and enhances the scale, quality and geographic diversification of our logistics portfolio,” said William Tay, chief executive officer of the manager.
Funding
Clar is expected to incur a total investment cost of S$181 million.
The transaction was financed through internal resources and existing debt facilities.
Following the acquisition, Clar’s aggregate leverage will increase marginally to 39.1 per cent from 39 per cent as at Dec 31, 2025.
“The acquisition aligns with our disciplined investment strategy of acquiring modern, well-located assets in developed markets with healthy fundamentals,” added Tay.
The addition of the Spanish assets raises the proportion of logistics properties in Clar’s total S$18.5 billion portfolio to 26 per cent, up from 24 per cent at the end of last year.
Units of Clar ended 0.4 per cent or S$0.01 higher at S$2.70 on Thursday.
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