CapitaLand Ascendas REIT plans to sell five industrial and logistics properties for $329 million, at a premium of 6% over the total market value, and book net proceeds of some $313.1 million.
At this price, CLAR is fetching a 20% premium over the total original purchase price of $274.2 million as well. The buyers are unrelated third parties and the properties are 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road and 19 & 21 Pandan Avenue, as well as 30 Tampines Industrial Avenue 3.
According to CLAR, the proposed divestments are in line with its proactive capital recycling strategy to improve the quality of CLAR’s portfolio and optimise returns for unitholders of CLAR.
The proceeds may be used to fund committed investments, paying down debt, extending loans to subsidiaries, fund general corporate and working
capital needs, and/or making distributions to unitholders.
On a pro forma basis, if the net proceeds were used to repay CLAR’s borrowings as at December 31 2024, its aggregate leverage would have reduced from 37.7% to approximately 36.6%.
CLAR expects to complete the divestments by end of the year.
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Following which, its potfolio will consist of 226 properties including 93 in Singapore, 34 properties in Australia, 49 properties in the US and 50 properties in the United Kingdom/Europe.
To date, CLAR has announced a total aggregate value of $355.5 million of divestments in 2025, including the recently completed sale of Parkside, a business space property in Portland, the US, for $26.5 million.
CLAR units closed at $2.69 on Aug 15, down 0.74%.
