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CapitaLand Ascendas REIT (CLAR) has announced the acquisition of two prime properties in Singapore for a combined value of SGD 700.2 million (approximately USD 543.6 million). The first is a Tier III colocation data centre located at 9 Tai Seng Drive, situated in a network-dense area favored by cloud providers and telecom operators. The second is a premium business park asset at 5 Science Park Drive, located in the one-north district, a hub for technology and research institutions. Both properties are fully leased to reputable tenants, ensuring stable and predictable income streams. These acquisitions are expected to increase CLAR's Singapore portfolio value by 6% to approximately SGD 11.7 billion.
The acquisition of two strategic properties in Singapore has been completed by CapitaLand Ascendas REIT (CLAR) for a total of SGD 700.2 million, or roughly USD 543.6 million. This move is part of the REIT's strategy to bolster its presence in the Singapore market, particularly in sectors experiencing robust demand such as data centres and business parks. Advertisement
The first acquisition is a Tier III colocation data centre situated at 9 Tai Seng Drive. This facility is strategically located in the Tai Seng Industrial Estate, an area known for its high network density, making it an attractive location for cloud service providers and telecommunications companies. The property is fully leased to reputable tenants, ensuring a stable income stream for the REIT.
The second acquisition is a premium business park asset located at 5 Science Park Drive in the one-north district. This area is renowned for its concentration of technology and research institutions, providing a conducive environment for innovation and business growth. The property is also fully leased to reputable tenants, further enhancing the REIT's income stability.S
Both properties were acquired at discounts to their independent market valuations, with the data centre purchased at a 2.2% discount and the business park asset at a 7% discount. These acquisitions are expected to increase CLAR's Singapore portfolio value by 6% to approximately SGD 11.7 billion, reinforcing its position in the local real estate market.
The growing demand for digital services, cloud computing, and artificial intelligence infrastructure has significantly increased investor interest in data centre assets. This trend is expected to continue, providing long-term rental stability and strong yield potential for investors in this sector.
With these acquisitions, CLAR's total property count rises to 232, including 98 assets in Singapore, further diversifying its portfolio and enhancing its market presence.
By acquiring properties with reputable tenants and strategic locations, the REIT aims to provide stable and predictable income streams to its investors. These moves not only enhance CLAR's portfolio value but also position it well to capitalize on the growing demand for digital infrastructure in Singapore.
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