CapitaLand Ascendas REIT (CLAR) is acquiring three assets across Singapore and Japan for a total of S$1.4 billion ($1 billion), in a move that advances its portfolio rejuvenation strategy and reinforces its position as a global REIT anchored in Singapore.
The acquisitions comprise a 100% interest in 25 Loyang Crescent, a cluster of ramp-up logistics and industrial buildings, for S$504.2 million, and a 50% interest in Ascent, a premium business space property at 2 Science Park Drive, for S$245 million in Singapore. A global sovereign wealth fund will acquire the remaining 50% interest in Ascent.
Separately, CLAR is entering Japan through the acquisition of a 49% interest in a Tier III hyperscale data centre in Greater Osaka for S$620.7 million. The remaining interest in the data centre is held by a fund managed by Mitsui & Co. Realty Management, a subsidiary of Mitsui & Co.
The acquisitions are aligned with the manager’s strategy to strengthen earnings resilience and enhance portfolio quality, according to the firm.
“Following our recent acquisitions of quality industrial and logistics assets, these three new accretive acquisitions reaffirm our commitment to build a high quality and resilient CLAR portfolio,” said William Tay, chief executive officer and executive director of CLAR Management.
“These assets strengthen our presence in Singapore where we have strong market leadership in business space and life sciences as well as logistics, while expanding into developed markets such as Japan with healthy market fundamentals and demand drivers,” he added.
Tay continued: “CLAR’s new expansion into Japan reflects our disciplined approach to scaling and diversifying CLAR’s global data centre portfolio across key established digital hubs with strong demand drivers and connectivity. This strategic diversification allows CLAR to tap new opportunities for growth while maintaining the disciplined approach that has always guided our investment and portfolio management."
The Singapore acquisitions deepen CLAR’s exposure to logistics and business space assets in its home market, where it already holds a strong position. The addition of 25 Loyang Crescent, including an upfront land premium of S$46.35 million, strengthens its logistics footprint, while the partial acquisition of Ascent enhances its presence in premium business space.
Meanwhile, the move into Japan marks a significant step in CLAR’s international expansion, particularly in the data centre segment, where demand continues to be driven by digitalisation and connectivity needs. The Greater Osaka asset adds exposure to a key established digital hub with strong demand drivers.
