CapitaLand Ascendas REIT (CLAR) has announced its plan to sell five of its industrial and logistics properties for a total of $329 million, which represents a 6% premium over their market value. CBRE acted as the broker for this deal.
This price also marks a significant 20% premium over the initial purchase price of $274.2 million for these properties. The buyers are independent third parties, and the properties in question are located at 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road, 19 & 21 Pandan Avenue, as well as 30 Tampines Industrial Avenue 3.
These divestments are in line with CLAR’s proactive strategy to recycle its capital, enhance the quality of its portfolio, and maximize returns for its unitholders. The net proceeds from this sale, estimated to be around $313.1 million, can be used to fund committed investments, pay off debts, extend loans to subsidiaries, cover general corporate and working capital requirements, or distribute to unitholders.
On a pro forma basis, if the net proceeds are utilized to retire CLAR’s borrowings as of December 31, 2024, its aggregate leverage is expected to reduce from 37.7% to approximately 36.6%. These divestments are expected to be completed by the end of this year.
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After these properties are sold, CLAR’s portfolio will consist of 226 properties, including 93 in Singapore, 34 in Australia, 49 in the US, and 50 in the United Kingdom/Europe. This strategic move is in line with CLAR’s goal to achieve a well-diversified and balanced portfolio.
Furthermore, in 2025, CLAR has already announced divestments totaling $355.5 million, including the recent sale of Parkside, a business space property in Portland, for $26.5 million.
This article was first published in [Source].