CapitaLand Ascendas REIT ( CLAR ) is acquiring 5 Tuas Avenue 5 in Singapore, for a purchase consideration of S$133.9 million ( US$104.3 million ) from Hup Hin Transport Co Pte Ltd ( the Vendor ) ( the Acquisition ).

 

The property is a modern ramp-up logistics asset that was completed in 2021. The purchase consideration of approximately S$133.9 million was negotiated on a willing-buyer and willing-seller basis, and is payable in cash.

 

It is a 1.5% discount to the independent market valuation of S$136.0 million as at February 1 2026, according to a statement.

 

The acquisition is expected to be distribution per unit ( DPU )-accretive for CLAR on a pro forma basis and will further enhance CLAR’s stable income stream. Assuming the acquisition was completed on January 1 2025, the DPU accretion is expected to be approximately 0.033 Singapore cents or 0.2%.

 

The first-year net property income ( NPI ) yield of the acquisition is attractive at approximately 6.6% pre-transaction costs and 6.5% post-transaction costs.

 

William Tay, chief executive officer and executive director of CapitaLand Ascendas REIT Management Limited ( the Manager ), says: “Our acquisition of 5 Tuas Avenue 5 builds on our strong growth momentum in Singapore and will further diversify CLAR’s portfolio with another DPU-accretive acquisition of a well-located logistics property.

 

“5 Tuas Avenue 5 will enhance our presence in western Singapore, which continues to benefit from structural demand drivers, including the expansion of Tuas Mega Port and supporting infrastructure. The long five-year lease term provides CLAR with income visibility and stable cash flows, underpinned by the fixed annual rental escalation.”

 

The property is currently fully occupied by four tenants including the vendor. Upon completion of the acquisition, the property will have a weighted average lease expiry of five years with an annual rental escalation of 2.0% under a triple-net lease structure.

 

Located in Tuas, the largest and most intensive industrial estate in the western region of Singapore, the property is close to key infrastructure such as Tuas Mega Port, Jurong Port, Tuas Second Link which connects Singapore to Johor, Malaysia, as well as the Ayer Rajah Expressway. Gul Circle MRT station on the East-West Line is situated within walking distance of the property, enhancing accessibility for tenants and their employees.

 

5 Tuas Avenue 5 is a seven-storey building with a gross floor area of 50,160 square metres ( sqm ). It features modern specifications including direct ramp access for 40-foot container trucks up to level six ( the highest logistics level ), clear floor to ceiling height of up to approximately 13 metres and good floor loading capacity of up to 30 kN per sq m.

 

Following the acquisition, CLAR’s logistics portfolio across Singapore, Australia, the United States ( US ), and the United Kingdom ( UK )/Europe will increase to approximately S$4.9 billion and account for approximately 26.2% of the total portfolio value of S$18.7 billion.

 

This further reinforces logistics as a key pillar within CLAR’s diversified global portfolio of business space and life sciences, industrial, data centre and logistics assets.

 

CLAR is expected to incur an estimated total investment cost of S$136.5 million ( Total Investment Cost ) comprising the purchase consideration of S$133.9 million, the acquisition fee payable to the Manager of approximately S$1.3 million ( being 1% of the purchase consideration ), and other transaction-related fees and expenses.

 

The manager intends to finance the total investment cost through a combination of net roceeds from the equity fund raising completed in April 20267 and debt financing. The acquisition is expected to be completed by the second half of 2026.