Clar buys Tuas logistics property for S$133.9 million

[SINGAPORE] CapitaLand Ascendas Reit (Clar) is buying a modern ramp-up logistics facility at 5 Tuas Avenue 5 for a purchase consideration of S$133.9 million in cash.

The purchase price represents a 1.5 per cent discount to the property’s independent market valuation of S$136 million as at Feb 1, 2026.

The transaction is expected to be accretive to the real estate investment trust’s (Reit) distribution per unit (DPU), said Clar in a bourse filing on Thursday (Jun 4).

Had the deal been completed at the start of 2025, the Reit’s DPU would increase by about S$0.00033, or 0.2 per cent, on a pro forma basis. The asset also offers a first-year net property income yield of about 6.6 per cent before transaction costs and 6.5 per cent post-transaction costs.

William Tay, CEO of the Reit’s manager, said that the “well-located” property will enhance Clar’s footprint in western Singapore. The region continues to benefit from structural demand drivers, particularly the ongoing expansion of the Tuas Mega Port and its supporting infrastructure, he added.

Completed in 2021, the seven-storey property has a gross floor area of 50,160 square metres.

The facility is currently fully occupied by four tenants, including the vendor Hup Hin Transport. Upon the expected completion of the deal in the second half of 2026, the property will carry a weighted average lease expiry of five years.

This triple-net lease structure has a fixed annual rental escalation of 2 per cent, which will provide the Reit with income visibility and stable cash flows, said the manager.

The Reit is expected to incur a total investment cost of S$136.5 million, which includes a 1 per cent acquisition fee payable to the manager alongside other transaction-related expenses.

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The manager intends to finance this total outlay through debt and a portion of the net proceeds from the Reit’s equity fundraising exercise that was completed in April. It was announced previously that about S$82.2 million from the S$903.5 million gross proceeds of that fundraising would be used to partially fund the acquisition of the logistics facility.

Following the completion of the acquisition, Clar’s global logistics portfolio will increase to about S$4.9 billion, making up 26.2 per cent of its total S$18.7 billion portfolio value.

Units of Clar closed flat at S$2.50 on Wednesday.