Advertisement
CapitaLand Ascendas REIT plans to acquire three fully leased industrial and logistics properties in Singapore from Vita Partners for approximately SGD 565.8 million (USD 438 million), as part of its SGD 1.3 billion domestic investment drive this year. The acquisitions, expected to close in early 2026, will raise the value of its Singapore portfolio to around SGD 12.3 billion, representing 68 % of total AUM. The properties are leased to tenants across technology, logistics, and life sciences sectors with a weighted average lease expiry of 5.5 years, delivering a projected net yield of 6.1 % and accretive to DPU.
CapitaLand Ascendas REIT has announced plans to acquire three industrial and logistics properties in Singapore from Vita Partners for approximately SGD 565.8 million, equivalent to USD 438 million. This acquisition is part of a larger SGD 1.3 billion investment initiative aimed at strengthening the REIT's domestic portfolio this year. The transaction is expected to close in the first quarter of 2026. Advertisement
The three properties 2 Pioneer Sector 1, Tuas Connection, and 9 Kallang Sector are fully leased to tenants in the technology, logistics, and life sciences sectors. The leases across these properties have a weighted average expiry of 5.5 years, offering predictable rental income and stability.
Upon completion, CapitaLand's Singapore assets will be valued at around SGD 12.3 billion, representing nearly 68% of its total assets under management. The acquisitions are projected to generate a net property income yield of about 6.1% after costs and are expected to positively impact the REIT's distribution per unit (DPU).
This move aligns with CapitaLand Ascendas REIT's ongoing strategy of expanding in Singapore's industrial and logistics sector, where it has consistently added high-quality assets to strengthen recurring income. Over recent years, the REIT has actively increased its domestic footprint to maintain a balanced portfolio and enhance investor returns. The latest acquisition demonstrates the company's focus on long-term growth and income stability by targeting properties with strong tenant demand and lease security.
Analysts note that Singapore's industrial real estate market remains resilient, with demand driven by technology and life sciences sectors. By securing fully leased properties with medium-term leases, CapitaLand Ascendas REIT minimizes vacancy risk while ensuring steady cash flow. This acquisition reflects the REIT's strategy of concentrating on high-performing domestic assets, which can support sustainable income growth for unit holders.
Source: Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
