CapitaLand Ascendas REIT (CLAR) has completed the divestment of five Singapore industrial and logistics properties for S$329 million, representing a 6% premium over the combined market valuation of S$311.3 million and a substantial 20% premium over the total original purchase price of S$274.2 million.
The properties sold to unrelated third parties include 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road, 19 & 21 Pandan Avenue, and 30 Tampines Industrial Avenue 3. The latter is an unoccupied high-specification asset that commanded S$23 million, marking a 5% premium to both market valuation and original purchase price.
This transaction forms part of CLAR’s proactive capital recycling strategy and brings the REIT’s aggregate 2025 divestments to S$355.5 million.
Net proceeds from the sale total S$313.1 million, providing CLAR with multiple strategic options including debt repayment, reinvestment opportunities, or distributions to unitholders.
Net proceeds of S$313.1 million give CLAR strategic flexibility for debt reduction, reinvestment, or unitholder distributions.
Should the proceeds be directed toward debt reduction, the REIT’s aggregate leverage ratio would improve from 37.7% to 36.6%. This would enhance balance sheet strength and financial flexibility while supporting the long-term sustainability of yield for unitholders.
The divestment aligns with CLAR’s strategic focus on enhancing overall portfolio quality and optimizing financial returns through recycling proceeds into higher-return or strategic investments.
This approach maintains the REIT’s flexibility for capital allocation decisions while streamlining the asset base for improved capital efficiency and facilitating a shift toward newer, higher-quality assets. Pro forma estimates indicate a 0.399 cent reduction in distribution per unit for FY2025, though no material impact on overall performance is expected.
Following the transaction, CLAR retains its position as Singapore’s largest listed industrial REIT. It continues to maintain a global portfolio of 226 properties comprising 93 assets in Singapore, 34 in Australia, 49 in the United States, and 50 in the United Kingdom and Europe.
The premium sale price reflects continued market demand for industrial and logistics assets and reinforces investor confidence in CLAR’s proactive management strategy.
This transaction exemplifies the broader Singapore REIT sector’s ongoing trend of portfolio optimization through non-core asset disposal. As investors continue to seek attractive investment options, middle-income families are increasingly turning to Executive Condominiums for their strategic property acquisitions in the Singapore market.
With capital recycling remaining a major theme amid evolving market conditions, REITs increasingly prioritize quality assets and balance sheet discipline. The Company Secretaries Hon Wei Seng and Lee Wei Hsiung formally submitted the transaction announcement to ensure regulatory compliance and stakeholder transparency.
