CapitaLand Ascendas REIT Announces S\$903.5 Million Equity Fund Raising with Major Acquisitions

Key Highlights

• CapitaLand Ascendas REIT (CLAR) has successfully raised approximately S\$903.5 million through a combination of a Private Placement and a Preferential Offering.
• The Private Placement was oversubscribed, attracting strong interest from new and existing unitholders, long-only funds, real estate specialists, private wealth, and multi-strategy investors.
• Issue Prices:
  • Private Placement Units priced at S\$2.406 per unit, representing a discount of approximately 4.2% to the last volume weighted average price (VWAP).
  • Preferential Offering Units priced at S\$2.35 per unit, a discount of approximately 6.5% to the last VWAP.
• Total of 249,377,000 Private Placement Units and 129,134,664 Preferential Offering Units to be issued.

Detailed Use of Proceeds

The Manager outlined a detailed allocation of the S\$903.5 million gross proceeds from the Equity Fund Raising. These are key actionable investments and potential acquisitions that could significantly impact the REIT’s asset base and future earnings:

• S\$113.6 million (12.6%) for partial financing of the acquisition of a Singapore industrial portfolio, including 2 Pioneer Sector 1, Tuas Connection, and 9 Kallang Sector.
• S\$57.9 million (6.4%) for the acquisition of DHL Canal Winchester, a Class A logistics property in Ohio, USA.
• S\$108.6 million (12.0%) for the acquisition of six modern Class A logistics properties in Spain (Barcelona and Madrid).
• S\$218.3 million (24.2%) for the acquisition of a logistics estate at 25 Loyang Crescent, Singapore.
• S\$93.5 million (10.3%) for a 50% interest in Ascent, a business park in Singapore Science Park 1.
• S\$188.3 million (20.8%) for a 49% interest in a data centre in Greater Osaka, Japan.
• S\$30.4 million (3.4%) earmarked for potential acquisition of a light industrial asset in Singapore (subject to due diligence).
• S\$82.2 million (9.1%) for the potential acquisition of a ramp-up logistics facility in Singapore (subject to due diligence).
• S\$10.7 million (1.2%) for estimated fees and expenses related to the equity fund raising.
• Any remaining funds will be used for general corporate and/or working capital purposes.

Key Shareholder and Price-Sensitive Information

• Material Acquisitions: The proceeds are being directed towards several completed and potential acquisitions in Singapore, the United States, Spain, and Japan. These acquisitions are expected to enhance the REIT’s portfolio with high-quality logistics, industrial, and business space assets, and a data centre.
• Potential Acquisitions: Some of the funds are allocated for potential acquisitions that are still under due diligence. If these deals do not proceed, the funds may be redirected towards other uses, including debt repayment or future acquisitions. This flexibility in fund usage may affect future distribution outlooks and asset growth.
• Trading of New Units: Trading of the new Private Placement Units is expected to commence at 9:00 a.m. on 2 April 2026.
• DBS Allocation: DBS Bank Ltd. has been allocated 6,750,000 Private Placement Units on a proprietary basis. SGX-ST has no objections, subject to compliance with strict conditions around independence, allocation limits, and disclosures.
• Oversubscription and Pricing: The oversubscription and competitive pricing of units are strong signals of investor confidence in CLAR’s management and growth strategy, but the discounted prices may have short-term implications on unit price performance.
• Potential Share Price Impact: The successful fund raising, portfolio expansion, and high-profile strategic acquisitions are all potentially price-moving events. Investors should monitor for announcements on the progress or outcome of the potential acquisitions, as any material deviation could affect the share value.

Other Important Information

• Pending Deployment: Pending deployment, net proceeds may be deposited with banks, used to repay borrowings, or for other short-term purposes at the discretion of the Manager.
• Ongoing Disclosures: The Manager will make periodic announcements regarding the use of proceeds and any material changes or deviations from the stated plans, including breakdowns for working capital, to ensure transparency to investors.
• Regulatory Compliance: The issue is not for distribution in the United States, EEA, UK (except eligible investors), Hong Kong, Thailand, Malaysia, Canada, Japan, or Australia. The new units are considered prescribed capital markets products and Excluded Investment Products in Singapore.

Conclusion

CapitaLand Ascendas REIT’s latest equity fund raising and aggressive portfolio expansion signal an ambitious growth path, focusing on high-quality logistics, industrial, and data centre assets across multiple geographies. The oversubscription of the Private Placement, strategic pricing, and strong institutional participation reinforce market confidence, but investors should closely watch for updates on the completion of potential acquisitions and the actual use of proceeds, as these will directly affect the REIT’s asset base, earnings, and potential distributions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should consult their professional advisors before making any investment decisions. Past performance is not indicative of future results. The value of units and income from them may fall as well as rise, and investors may lose all or part of their capital. Please refer to official filings and announcements for further details.

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