CapitaLand Ascendas REIT invests SGD 700 million in new properties!

CapitaLand Ascendas REIT invests SGD 700 million in new properties!

CapitaLand Ascendas REIT today announced the acquisition of a data center and premium business park in Singapore. The total investment for this acquisition is SGD 700.2 million, which is approximately USD 543.63 million. Loud Market screener This transaction will increase the value of the Singapore portfolio by 6% to approximately SGD 11.7 billion.

Both acquired properties are fully leased to reputable tenants, guaranteeing stable income streams for CapitaLand Ascendas REIT. The data center will be purchased at a 2.2% discount to the average market value as of May 15, 2025, while the commercial property will be purchased at a 7% discount to the appraised value. The demand for data centers has increased significantly in recent years, driven by the growth of digital services, cloud computing and the development of AI infrastructure.

Portfolio expansion and market position

Following this acquisition, CapitaLand Ascendas REIT's total number of properties increases to 232, of which 98 are located in Singapore. The development in the data center sector shows a positive trend. This transaction will not only expand the portfolio but also strengthen the market position of CapitaLand Ascendas REIT.

Additionally, Ascendas Funds Management (S) Limited plans to acquire a portfolio of 11 data centers in Europe from Digital Realty Trust, Inc. for SGD 904.6 million. This portfolio consists of data centers in the UK (4), Netherlands (3), France (3) and Switzerland (1). With this acquisition, the contribution of the data center segment will grow to SGD 1.5 billion, representing 10% of the total assets under management, as Press portal reported.

European expansion

93% of the European target portfolio is located in key data center locations such as London, Amsterdam and Paris. These regions are experiencing strong capacity growth supported by digital transformation and increasing demand for cloud services. The vacancy rate in the FLAP markets (Frankfurt, London, Amsterdam, Paris) is expected to fall to 17% by 2021.

Upon completion of the acquisition, Ascendas REIT will own a total of 212 properties valued at SGD15.0 billion. Additionally, 60% of Ascendas REIT's investment properties are located in Singapore, 14% in the US, 14% in Australia and 12% in Europe. The target portfolio has an occupancy rate of 97.9% and a long weighted average lease expiration (WALE) of 4.6 years, demonstrating the acquisition's financially stable foundation.

These strategic decisions underscore CapitaLand Ascendas REIT and Ascendas Funds Management's commitment to expansion and diversification in the data center and commercial real estate sectors.