CapitaLand Ascendas Reit proposes S$329 million divestment of five Singapore properties

[SINGAPORE] The manager of CapitaLand Ascendas Reit (Clar) announced on Monday (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 S$329 million, said the manager in a bourse filing.

This follows Clar’s target of about S$300 million to S$400 million in divestments in Singapore, Europe, the US and Australia this year.

The Business Times understands the 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 S$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 in response to BT. “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.”

Clar has announced a total aggregate value of S$355.5 million of divestments year to date.

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 unitholders, said the filing.

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 the UK and Europe.

Clar posted a lower first-half revenue on Aug 4, which was down 2 per cent year on year at S$754.8 million. This was mainly due to the divestment of five properties in Australia, Singapore and the US, as well as the decommissioning of a property in the UK for redevelopment in June 2024.

It also announced the launch of its first logistics developments in the UK at an estimated total investment cost of S$350.1 million on Aug 11.

Units of Clar closed 0.7 per cent or $0.02 down at S$2.69 on Friday.