CapitaLand Ascendas REIT to Divest 95 Gilmore Road in Australia at a Premium
Key Highlights
- Proposed Divestment: CapitaLand Ascendas REIT (CLAR) has announced the planned divestment of its logistics property at 95 Gilmore Road in Queensland, Australia.
- Sale Consideration: The property will be sold for approximately S\$90.0 million (A\$101.8 million), representing a 9.5% premium over the independent market valuation and a 17.2% premium to its original purchase price in 2015.
- Capital Recycling Strategy: This divestment is part of CLAR’s ongoing capital recycling and portfolio reconstitution strategies, aimed at enhancing portfolio quality and maintaining financial flexibility.
- Aggregate Divestments: Including this transaction, CLAR expects to complete S\$396.0 million worth of divestments in 4Q 2025, reflecting a 6.6% premium over market valuations and a 20.4% premium to original purchase prices for these assets.
- Estimated Net Proceeds: After costs, CLAR expects net proceeds of S\$83.4 million (A\$94.3 million) from this sale.
- Use of Proceeds: The proceeds may be used to finance committed investments, reduce debt, extend loans to subsidiaries, fund general corporate purposes, and/or distribute to unitholders.
- Leverage Impact: If the proceeds are used for debt repayment, CLAR’s pro forma aggregate leverage would reduce to 39.5%, compared to 39.8% as at 30 September 2025.
- Portfolio Impact: After completion, CLAR will own 228 properties globally, with a diversified portfolio across Singapore, Australia, the United States, and the United Kingdom/Europe.
- Manager’s Divestment Fee: The manager is entitled to a divestment fee of 0.5% of the sale consideration, payable in cash.
Details of the Divestment
The property at 95 Gilmore Road is a single-storey logistics facility with a gross floor area of 41,318 square metres, located approximately 22 kilometres south of Brisbane CBD. The independent valuation was conducted by Jones Lang LaSalle Advisory Services Pty Ltd, using capitalisation of net income and discounted cash flow methods.
The sale is expected to complete in 4Q 2025. The transaction underscores CLAR’s disciplined approach to capital recycling and its strategy to redirect capital towards higher-quality, accretive assets. This is demonstrated by CLAR’s recent announcement of the proposed acquisition of three high-quality industrial and logistics properties in Singapore for S\$565.8 million. The news release also notes completion of three earlier divestments, bringing total transactions in FY 2025 to S\$498.0 million.
Financial Impact
- Net Asset Value and Distribution: The divestment is not expected to have any material impact on CLAR’s net asset value or distribution per unit for the year ending 31 December 2025.
- Net Property Income: Had the divestment been completed on 1 January 2024, net property income would have decreased by S\$4.3 million for FY 2024.
Portfolio Update
Post-divestment, CLAR will own 97 properties in Singapore, 33 in Australia, 49 in the United States, and 49 in the United Kingdom/Europe. Its investment properties are valued at S\$17.7 billion, and the REIT maintains a large, diversified tenant base of approximately 1,790 companies, including major names such as Sea Group, Stripe, DHL, DBS Bank, Seagate, and Citibank.
About CapitaLand Ascendas REIT
CLAR is Singapore’s first and largest listed business space and industrial REIT, listed on SGX-ST since November 2002. It is part of CapitaLand Investment Limited, which manages S\$120 billion in assets globally. CLAR is included in several major indices and holds an ‘A3’ rating from Moody’s Investors Service.
Potential Share Price Impact and Investor Considerations
- Premium Divestment: The sale at a significant premium to valuation and book cost signals effective capital management and may be viewed positively by investors.
- Capital Recycling: The strategy to reinvest in higher-quality assets and reduce leverage supports long-term value creation and financial flexibility.
- Distribution Potential: The proceeds may be used for distributions to unitholders, which could be price sensitive.
- Portfolio Quality: Divestment of mature assets and acquisition of high-quality properties in Singapore demonstrate portfolio upgrading, which may improve future returns and enhance investor confidence.
- No Material Impact on NAV/DPU: While the divestment is not expected to materially affect net asset value or distribution per unit, the overall premium achieved and improved capital structure may have a positive influence on share price sentiment.
Contact Information
Analyst Contact:
Andrea Ng, Assistant Vice President, Listed Funds, Investor Relations
Tel: +65 6713 1150
Email: [email protected]
Media Contact:
Michele Ng, Head, Group Communications
Tel: +65 6713 2881
Email: [email protected]
Disclaimer
This article is for informational purposes only and may contain forward-looking statements. Actual results may differ due to various risks and uncertainties. Investors should not rely solely on the information herein and are advised to perform their own due diligence. Past performance is not indicative of future results. The value of units and income from them may fall as well as rise. This article does not constitute an offer or invitation to subscribe for securities.
