CapitaLand Ascendas REIT (A17U) has agreed to buy a seven-storey ramp-up logistics property at 5 Tuas Avenue 5 in Singapore for 133.9 million Singapore dollars in cash, representing a 1.5% discount to the independent market valuation of 136.0 million Singapore dollars as at Feb, 1 2026.
Completed in 2021, the 50,160 sq m building is fully occupied by four tenants under a triple-net structure and carries a weighted average lease expiry of about five years with an annual rental escalation of 2.0%. The acquisition is projected to be distribution-per-unit accretive by roughly 0.033 Singapore cents, or 0.2%, on a pro-forma basis, assuming completion on Jan, 1 2025. The first-year net property income yield is estimated at 6.6% before transaction costs and 6.5% after.
Total investment cost is expected to reach 136.5 million Singapore dollars, including a 1.3 million Singapore dollars acquisition fee to the manager and other expenses. The trust plans to fund the purchase with proceeds from its April 2026 equity fund-raising and debt financing. Completion is targeted for the second half of 2026.
Following the deal, CapitaLand Ascendas REIT’s logistics portfolio across Singapore, Australia, the United States, the United Kingdom and Europe will rise to about 4.9 billion Singapore dollars, accounting for roughly 26.2% of its total portfolio value of 18.7 billion Singapore dollars as at Mar, 31 2026.
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