CapitaLand Ascendas REIT plans S$566M Singapore industrial logistics acquisition

CapitaLand Ascendas REIT (CLAR) is set to acquire a portfolio of three fully occupied industrial and logistics properties in Singapore for approximately S$565.8 million. The properties include 2 Pioneer Sector 1, a ramp-up logistics asset; Tuas Connection, a light industrial facility; and 9 Kallang Sector, a high-spec industrial property, all leased to reputable tenants in sectors like technology, logistics, and life sciences. These acquisitions, expected to close by Q1 2026, are part of CLAR's broader strategy to strengthen its Singapore presence with an anticipated total investment of about S$1.3 billion in 2025. The properties feature built-in rental escalations of 1% to 5% annually and rents roughly 15% below current market rates, which supports income stability and growth potential. CLAR's CEO William Tay highlighted these accretive acquisitions complement recent purchases of a Tier III colocation data center and a premium business space property completed in August 2025, enhancing the REIT’s portfolio value to around S$12.3 billion. The deal is financed through a mix of internal resources and existing debt facilities, reflecting a disciplined approach to asset management and value creation for investors.