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CapitaLand Ascendas REIT has announced the acquisition of interests in three assets located in Singapore and Japan for a total of SGD 1.41 billion (USD 1.10 billion), including fees and expenses. The deals include full ownership of a logistics and industrial asset in Singapore, partial stakes in a business space property, and a 49% stake in a hyperscale data centre in Greater Osaka. The transactions aim to strengthen income stability, diversify the portfolio, and increase exposure to the growing data centre segment driven by cloud computing and artificial intelligence demand.
CapitaLand Ascendas REIT has confirmed plans to acquire interests in three assets across Singapore and Japan for a total consideration of SGD 1.41 billion (USD 1.10 billion), inclusive of fees and expenses. The acquisitions are intended to strengthen its recurring income base while also enhancing diversification across asset classes and geographies. Advertisement
The first asset involves a 100% stake in a logistics and industrial property located at 25 Loyang Crescent in Singapore, valued at SGD 504.2 million. The second transaction includes a 50% stake in Ascent, a business space asset, for SGD 245 million. The remaining 50% stake in Ascent will continue to be held by a global sovereign wealth fund, indicating a joint ownership structure.
The REIT is also making its entry into the Japanese market through the acquisition of a 49% stake in a Tier III hyperscale data centre located in Greater Osaka. This stake is valued at SGD 620.7 million. The remaining 51% will be held by a fund managed by a unit of Japanese conglomerate Mitsui & Co, reflecting a partnership-based investment approach.
Post completion of these transactions, the REIT's Singapore-based assets under management are expected to increase to around SGD 13.2 billion. This will represent approximately 66% of its enlarged total portfolio value, estimated at SGD 19.9 billion.
The Osaka data centre marks the REIT's first investment in Japan and aligns with the growing demand for digital infrastructure in the Asia-Pacific region. Increasing reliance on artificial intelligence applications and cloud computing services continues to drive the need for high-capacity and reliable data centre facilities, particularly those classified under Tier III standards.
In addition, the REIT has proposed an equity fund raising exercise expected to generate gross proceeds of at least around SGD 900 million. These proceeds are intended to partially finance the acquisitions, including the newly announced assets in both Singapore and Japan, supporting the overall funding structure of the expansion strategy.
Source Reuters
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