CapitaLand Ascendas Reit plans $329 million divestment of five Singapore properties
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Clar’s target in divestments this year is about S$300 million to S$400 million.
PHOTO: CAPITALAND ASCENDAS REIT
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SINGAPORE - The manager of CapitaLand Ascendas Reit (Clar) announced on Aug 18 the proposed divestments of five Singapore properties.
These divestments are being proposed at “healthy premiums” of about 6 per cent over the properties’ total market valuation and 20 per cent over the original purchase price, for a total sale consideration of $329 million, said the manager in a bourse filing.
Three of the properties are logistics properties, while the remaining two are industrial properties.
The proposed divestments are in line with the manager’s “proactive capital recycling strategy” and aim to “improve the quality” of the Clar portfolio and optimise returns for unit holders, said the filing.
To date in 2025, Clar has announced a total aggregate value of $355.5 million of divestments.
The Business Times understands the five assets were acquired by an EZA Hill-led consortium. The portfolio transaction was brokered by CBRE’s industrial and logistics team who declined to comment on the specifics of the deal.
The estimated net proceeds after divestment costs are expected to be $313.1 million. The divestments are expected to be completed within the fourth quarter of 2025.
“Building on a stellar 2024, we are seeing sustained momentum in Singapore’s industrial real estate sector,” said CBRE’s head of Singapore industrial capital markets Loh Lee Fen. “The Singapore dollar’s strength and a favourable lending environment, including a declining Sora (Singapore Overnight Rate Average), are key contributors to this positive trend.”
The manager is entitled to a divestment fee of 0.5 per cent of the sale considerations of the properties, paid in cash.
Following the completion of the proposed divestments, Clar will own 226 properties in total – 93 properties in Singapore, 34 properties in Australia, 49 properties in the US and 50 properties in Britain and Europe.
Clar posted a lower first-half revenue on Aug 4, which was down 2 per cent year on year at $754.8 million.
This was mainly due to the divestment of five properties in Australia, Singapore and the United States, as well as the decommissioning of a property in Britain for redevelopment in June 2024.
It also announced the launch of its first logistics developments in Britain at an estimated total investment cost of $350.1 million on Aug 11.
Units of Clar were trading up 0.4 per cent, or one cent, at $2.70 as at 10.07am on Aug 18. THE BUSINESS TIMES
