Clar Expands Logistics Portfolio Uk 3501 Mil
CLAR Continues to Expand its Logistics Portfolio in the UK with £271.66 Million Acquisition
Capitaland Ascendas REIT (CLAR) is set to strengthen its presence in the United Kingdom (UK) through the acquisition of two plots of freehold land in the East Midlands for £271.66 million ($350.1 million USD). This move is in line with the REIT’s strategy to scale up its UK logistics portfolio.
On August 11, CLAR announced its proposed acquisition of the two plots of land known as Manton Wood and Towcester. Both locations are in the East Midlands, a key logistics market in the UK. The REIT plans to develop a total of four logistics properties on the plots.
At Manton Wood, CLAR will construct a single-storey logistics property with a gross floor area (GFA) of 42,900 square meters. In Towcester, three single-storey logistics properties ranging from approximately 20,700 square meters to 38,300 square meters will be developed. These buildings will boast eaves measuring 15 to 18 meters, ample trailer parking, good floor loading capacity, and deep yards for optimal operational efficiency.
According to the REIT, the additions will increase its UK portfolio by 27.2%, to a total value of £1.2 billion ($1.6 billion USD). This will account for 10% of CLAR’s total assets under management (AUM) of $17.2 billion USD.
CLAR expects the stabilised net property income (NPI) yield for the properties to be around 7.3% pre-transaction costs and 6.9% post-transaction costs.
With this acquisition, CLAR’s executive director and CEO, William Tay, says, “we are taking a significant step forward in our strategy to expand the REIT’s UK logistics portfolio.” He adds that “the addition of these top-notch and environmentally-friendly logistics properties strengthens CLAR’s presence in the East Midlands, a crucial market in the UK’s logistics hub, and fulfills the demand for high-quality and well-located space from tenants.”
Tay also reveals that CLAR currently has eight ongoing projects, including developments, redevelopments and asset enhancement initiatives, in Singapore, the US, and UK, worth an estimated $850 million USD.
This is another move by CLAR to diversify its portfolio and expand its reach in the logistics sector. Earlier this year, the REIT acquired a property in the US for $150.3 million USD, marking its first sale and leaseback acquisition. With its robust growth strategy, CLAR is expected to continue expanding its global logistics portfolio and deliver value to its shareholders.
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