Capitaland Ascendas REIT (CLAR) has announced its plans to expand its logistics assets in the UK by acquiring two plots of freehold land in the East Midlands for $350.1 million on 11th August. The acquisition is a significant move for the REIT, and it intends to develop four logistics properties, two on each plot, known as Manton Wood and Towcester.
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The first plot, Manton Wood, will feature a single-storey logistics property with a gross floor area of 42,900 sqm. On the second plot, Towcester, CLAR plans to develop three single-storey logistics properties ranging from 20,700 sqm to 38,300 sqm. These properties will have eaves measuring 15 metres to 18 metres, ample trailer parking, good floor loading capacity, and deep yards for operational efficiency.
Following the acquisitions, CLAR’s UK portfolio will see a significant increase of 27.2% to $1.6 billion, accounting for 10% of its total assets under management (AUM) of $17.2 billion.
The REIT expects the stabilised net property income (NPI) yield for the properties to be around 7.3% pre-transaction costs and 6.9% post-transaction costs.
According to executive director and CEO of the manager, William Tay, this is a significant step forward in CLAR’s strategy to expand its UK logistics portfolio. He believes that the addition of these green-certified and best-in-class logistics properties will enhance the REIT’s portfolio in the East Midlands, a critical market in the UK’s logistics heartlands. Tay also believes that these properties are well-positioned to meet the growing demand for high-quality and strategically located logistics space.
The two new projects will be added to CLAR’s ongoing projects, which currently include eight developments, redevelopments, and asset enhancement initiatives in Singapore, the US, and the UK, worth an approximate total of $850 million. This story was first published on the Edge Singapore.