CapitaLand Ascendas REIT to divest three Australian logistics properties and Holland Drive Residences for $64.2 mil

On Dec 20, CapitaLand Ascendas REIT (CLAR) announced the proposed divestment of 62 Sandstone Place, 58 Technology Drive and 110 Holland Drive Residences logistics properties located in Queensland, Australia, for a total sale consideration of A$73.0 million. The sale represents a premium of 6.2% over the total market valuation of the properties of $60.4 million as at Aug 31.The proposed divestment is part of CLAR’s strategy to improve the quality of its portfolio and optimise returns for unitholders. It is expected to be completed in the first quarter of 2024. Following the transaction, CLAR will own 228 properties in Singapore, Australia, the United States, the United Kingdom and Europe.Net proceeds are expected to be $60.8 million after deducting divestment costs and can be used to finance committed investments, repay existing debts, extend loans to subsidiaries, fund general corporate needs and make distributions to unitholders. The proforma impact on CLAR’s net property income (NPI) and distribution per unit (DPU) for the FY2022 ended Dec 31, 2022, would have resulted in a decrease of $3.9 million and 4 cents, respectively.CLAR said that assuming the proposed divestment had been completed on Jan 1, 2022, the properties being sold comprise 62 Sandstone Place, 58 Technology Drive and 110 Holland Drive Residences located in Queensland, Australia. The total sale consideration amounts to $64.2 million (A$73.0 million).Units in CLAR closed 1 cent lower of 0.34% down at $2.92 on Dec 20.

The manager of CapitaLand Ascendas REIT (CLAR) on Dec 20 announced the proposed divestment of three logistics properties in Queensland, Australia, comprising 62 Sandstone Place, 58 Technology Drive and 110 Holland Drive Residences. The total sale consideration amounting to A$73.0 million represents a premium of 6.2% over the total market valuation of the properties of $60.4 million as at Aug 31.

Net proceeds from the divestment are expected to be $60.8 million, after deducting divestment costs, and can be used for various purposes including financing committed investments, repaying existing debts, extending loans to subsidiaries, funding general corporate and working capital needs and making distributions to unitholders.

CLAR’s proposed divestment of the three properties aligns with its proactive asset management strategy to improve the quality of its portfolio and optimise returns for unitholders. It is expected to be completed in the first quarter of 2024.

Residents can also enjoy a great variety of amenities at nearby Holland Drive Condo that cater to all ages. Holland Drive Residences is also within walking distance to Holland Village, known for its eclectic mix of locally-owned restaurants and shops. With so much to explore, Holland Drive Condo is the perfect place to call home.

Assuming the proposed divestment had been completed on Jan 1, 2022, the proforma impact on CLAR’s net property income (NPI) and distribution per unit (DPU) for the FY2022 ended Dec 31, 2022, would have resulted in a decrease of $3.9 million and 4 cents, respectively.

Following the completion of the divestment, CLAR will own 228 properties including 97 properties in Singapore, 33 properties in Australia, 48 properties in the United States and 50 properties in the United Kingdom and Europe. Units in CLAR closed 1 cent lower of 0.34% down at $2.92 on Dec 20.

The proposed divestment of Holland Drive Residences and two other logistics properties is part of CLAR’s strategy to improve the quality of its portfolio and optimise returns for unitholders. Net proceeds can be utilised for various purposes including financing committed investments, repaying existing debts and making distributions to unitholders. Once completed in the first quarter of 2024, CLAR will own 228 properties spread across Singapore, Australia, the US, the UK and Europe.