CapitaLand Ascendas REIT Announces Acquisition of Prime Logistics Portfolio in Spain

CapitaLand Ascendas REIT (CLAR) has announced a significant acquisition involving six prime Grade A logistics properties located in Madrid and Barcelona, Spain’s largest and most established logistics markets. This move is set to deepen CLAR’s presence in the European logistics sector and further diversify its global portfolio.

Key Highlights of the Acquisition

• Portfolio Composition: The acquisition comprises six Grade A logistics properties—four in Barcelona and two in Madrid. All properties are modern, freehold logistics assets with a total gross floor area of 98,825 sqm.
• Purchase Consideration: The transaction is valued at S\$185.4 million (€124.0 million), representing a 5.9% discount to the portfolio’s independently appraised valuation of S\$197.0 million (€131.7 million).
• Investment Cost: Total investment cost is S\$181.0 million (€121.0 million).
• Vendors: The sellers are Mona Lisa Holdco (Spain), B.V. and Thunder (Spain) Propco III, S.L.U.
• Occupancy & Lease Profile: The properties are fully occupied (100% occupancy as at 1 January 2026) by renowned multinational tenants from sectors such as retail, fashion, food & groceries, electronics, and logistics. The portfolio boasts a Weighted Average Lease Expiry (WALE) of 9.1 years, with index-linked annual rental adjustments.

Strategic Locations

• Madrid: The two properties are located along the A-2 Corridor in Torrejón de Ardoz, offering direct access to the A-2 highway, proximity to Madrid’s city centre (20 minutes), international airport (15 minutes), and Torrejón Dry Port.
• Barcelona: The four properties are situated near the AP-7 Corridor in Sant Feliu de Buixalleu, just 5 minutes from the AP-7 motorway. The assets are within an hour from Barcelona’s airport and the French border, making them highly accessible and attractive for logistics operations.

Strategic Rationale & Market Impact

• Enhanced Portfolio Diversification: This acquisition expands CLAR’s footprint in Europe to five countries (UK, Netherlands, France, Switzerland, and Spain). The value of the UK/Europe portfolio will rise by 10.9% to approximately S\$1.8 billion, and logistics exposure will increase to 26% of total portfolio value (S\$18.5 billion).
• Modern Logistics Portfolio: Post-acquisition, CLAR’s logistics assets will span Singapore, Australia, the US, and UK/Europe, with a total value of S\$4.7 billion. The proportion of modern logistics assets in UK/Europe rises to 77.5% by AUM.
• Strengthened Income Stability: The long WALE (9.1 years) and fully occupied properties provide stable and predictable income streams. Most tenants are multinational, reducing credit risk.
• Favourable Market Dynamics:
  • Madrid: Logistics vacancy rates in Torrejón de Ardoz are 0% (as at 4Q 2025), with prime logistics rents rising 5.8% YoY to €7.25/sqm/month.
  • Barcelona: Vacancy rates in Sant Feliu de Buixalleu are also 0%, with prime logistics rents increasing 2.9% YoY to €9.25/sqm/month. Over 80% of new supply is pre-leased, and there is a lack of available land for speculative projects.
• Macroeconomic Strength: Spain’s annual GDP growth was 2.8% in 2025, with strong domestic demand and population growth (0.9% in 2025 to 49.1 million). The country maintains an investment-grade rating (A category) from S&P, Moody’s, and Fitch, underpinning a stable investment environment.
• Sector Investment Activity: Industrial and logistics investment in Spain reached €1,270 million in 2025, with 70% concentrated in Barcelona and Madrid. Portfolio investment activity, led by funds and private equity, reflects favourable macroeconomic and financing conditions.

Financial Impact

• Attractive NPI Yield: The portfolio delivers a net property income (NPI) yield of 6.3% pre-transaction costs and 6.5% post-transaction costs in Year 1.
• DPU Accretion: The acquisition is projected to be DPU-accretive, with pro forma distribution per unit (DPU) increasing from 15.005 cents to 15.019 cents, representing a 0.1% accretion.
• Funding Structure: Assumes a financing mix of 60% equity and 40% debt, with management fees paid 80% in cash and 20% in units.

Shareholder Considerations & Potential Price Sensitivity

• This acquisition is likely to be price-sensitive and may positively impact CLAR’s share value due to the following factors:
  • The acquisition is DPU-accretive, improving returns to unitholders.
  • It strengthens CLAR’s portfolio diversification, income stability, and exposure to high-growth, low-vacancy logistics markets in Europe.
  • The properties’ strategic locations and modern specifications align with growing demand for quality logistics space in Spain.
  • CLAR’s increasing scale in Europe enhances its profile among institutional investors.
• Risks: Investors should note that the value of units and income may rise or fall. The acquisition involves exposure to foreign markets, currency risk, and general real estate investment risks.

Contact Information

For further enquiries, investors may contact Ms Andrea Ng, AVP, Investor Relations at [email protected] or call +65 6713 1150.

Disclaimer

This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The information herein is based on management’s current views and assumptions. Actual future performance may differ materially due to risks, uncertainties, and other factors. Investors are advised to conduct their own due diligence and consult with financial advisors before making investment decisions. Past performance is not indicative of future results.

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