CapitaLand Ascendas REIT Completes Acquisition of DHL Canal Winchester Property in the US

CapitaLand Ascendas REIT (CLAR) has announced the successful completion of its acquisition of the DHL Canal Winchester logistics property in the United States, further expanding its international portfolio and reinforcing its presence in the US logistics real estate sector.

Key Points of the Report

• Acquisition Details: CLAR completed the acquisition of a Class A logistics property known as DHL Canal Winchester. This acquisition was executed through a sale and leaseback agreement with DHL for a total consideration of S\$94.5 million.
• Property Profile: The DHL Canal Winchester property is a high-grade, Class A logistics facility located in the United States, marking a significant addition to CLAR’s logistics portfolio.
• Transaction Structure: The acquisition was undertaken by Ascendas Reit Columbus 1 LLC, a subsidiary of CLAR, and has now been officially completed.
• Portfolio Growth: Following this transaction, CLAR’s property portfolio now comprises a total of 227 properties across four geographical markets:
  • 96 properties in Singapore
  • 33 properties in Australia
  • 49 properties in the United States
  • 49 properties in the United Kingdom/Europe

Shareholder and Investor Considerations

• Potential Price Sensitivity: The acquisition demonstrates CLAR’s ongoing strategy to diversify and expand its logistics property portfolio internationally. The addition of a premium, income-generating logistics asset under a sale and leaseback with a blue-chip tenant like DHL is typically viewed positively by investors. The S\$94.5 million investment is expected to contribute stable rental income streams and portfolio resilience.
• Portfolio Diversification: With nearly half of its properties now situated outside Singapore, CLAR is less reliant on any single market, potentially reducing geographical risks and enhancing earnings stability.
• Strategic Partnership: The transaction solidifies CLAR’s relationship with DHL, a global logistics leader, which may open additional opportunities for future collaborations or acquisitions.
• Unit Liquidity and Market Risk: Investors are reminded that the value of CLAR units and their income can fluctuate. Past performance is not necessarily indicative of future results. The units are traded on the Singapore Exchange and are not guaranteed by the Manager or its affiliates.

Important Notice for Investors

The management of CapitaLand Ascendas REIT emphasizes that this announcement is for informational purposes only. It does not constitute an offer, invitation, or solicitation to purchase or subscribe for REIT units. Investors should be aware of the inherent investment risks, including potential loss of capital.

Disclaimer

This article is provided for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors are advised to conduct their own due diligence and consult their financial advisors before making any investment decisions. The past performance of CapitaLand Ascendas REIT is not indicative of future performance. The value of investments and the income from them may fluctuate, and investors may not recover the amounts originally invested.

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