CapitaLand Ascendas Reit to acquire 3 Singapore properties for about S$565.8 million
Acquisition will increase the value of Clar’s portfolio in the Republic to around S$12.3 billion
[SINGAPORE] The manager of CapitaLand Ascendas Reit (Clar) on Tuesday (Oct 7) announced the proposed acquisition of three Singapore properties from Vita Partners for a total consideration of about S$565.8 million.
The price tag includes estimated upfront land and enhancement premiums of S$33.2 million, with the acquisitions expected to be completed by the first quarter of 2026. It is a 3.9 per cent discount to the total valuation of S$589 million.
The properties to be acquired consist of 2 Pioneer Sector 1, a ramp-up logistics property; Tuas Connection, a light industrial property; and 9 Kallang Sector, a high-specifications industrial property.
The distribution per unit would have risen about S$0.00124 or 0.8 per cent for the 2024 financial year, assuming the acquisitions had been completed at the start of the year and funded with 40 per cent debt and 60 per cent equity.
“These accretive acquisitions build on our recent acquisitions of a Tier III co-location data centre and a premium business space property which were completed in August 2025,” said William Tay, executive director and chief executive officer of the manager. “This strong lease profile is a rare and attractive opportunity in Singapore’s industrial property market.”
Clar is expected to incur an estimated total investment cost of S$592.6 million, including the acquisition fee of about S$5.7 million, stamp duty and other transaction-related fees and expenses of about S$21.1 million. It will be financed through a combination of internal resources and existing debt facilities, if required.
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The seller, Vita Partners, is a joint venture between Warburg Pincus and Lendlease that is focused on life sciences, innovation real estate and research and development.
“This divestment reflects our ongoing commitment to unlocking value through disciplined asset management and strategic exits,” said CEO of Vita Partners Bart Price.
The properties are fully occupied by tenants in the technology, logistics and life sciences industries, with a weighted average lease expiry of 5.5 years and built-in rental escalations, ranging from 1 to 5 per cent a year. The in-place rents are about 15 per cent below current market rents.
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The acquisitions will increase the value of Clar’s Singapore portfolio to about S$12.3 billion, which will account for 68 per cent of the real estate investment trust’s total assets under management as at Jun 30, 2025. So far in 2025, it has a total investment of about S$1.3 billion in the Republic.
The expected first-year net property income yield of the three properties is about 6.4 per cent of pre-transaction costs and 6.1 per cent of post-transaction costs.
Real estate services and investment firm CBRE brokered the deal.
Rimon Ambarchi, CBRE’s head of industrial and logistics for Singapore and South-east Asia, said: “With interest rates on a downward trajectory, investors are increasingly looking to deploy capital into defensive asset classes. Industrial real estate, with its stable returns and widening yield spreads, is firmly on their radar.”
Units of Clar ended Monday flat at S$2.85.
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