CapitaLand Ascendas REIT Buying Singapore Shed From Hup Hin for $104M

CapitaLand Ascendas REIT has agreed to buy a logistics facility in western Singapore from heavy haulage provider Hup Hin Transport for S$133.9 million ($104.3 million), as the SGX-listed trust continues to build out its home-market portfolio.

The acquisition gives CLAR control of 5 Tuas Avenue 5, a seven-storey ramp-up logistics property completed in 2021 in Singapore’s largest industrial estate, with the deal set to close in the second half of 2026, the REIT’s Temasek-controlled manager said Wednesday in a release.

The purchase price represents a 1.5 percent discount to the asset’s S$136 million independent valuation as of 1 February, with the first-year net property income yield estimated at 6.6 percent before transaction costs and 6.5 percent after costs. The transaction follows CLAR’s February buy of a 50 percent stake in the Ascent business space at 2 Science Park Drive and the proposed purchase of 25 Loyang Crescent, a logistics asset due to be acquired in the third quarter.

“5 Tuas Avenue 5 will enhance our presence in western Singapore, which continues to benefit from structural demand drivers, including the expansion of Tuas Mega Port and supporting infrastructure,” said William Tay, chief executive of the manager.

Tuas Hub

Developed by Hup Hin Property, 5 Tuas Avenue 5 spans 50,160 square metres (539,917 square feet) of gross floor area and net lettable area, with direct ramp access for container trucks up to the sixth floor, the building’s highest logistics level.

The facility has clear floor-to-ceiling heights of up to 13 metres (42.6 feet) and floor loading capacity of up to 30 kilonewtons per square metre, with the property also within walking distance of Gul Circle MRT station on Singapore’s East-West Line.

The building is fully occupied by four tenants, including Hup Hin, with a weighted average lease expiry of five years and annual rental escalation of 2 percent under a triple-net lease structure. The property has 23 years remaining on its land lease.

The asset’s location in Tuas puts it near Jurong Port, the Tuas Second Link to Johor, the Ayer Rajah Expressway and the Tuas Mega Port, a multibillion-dollar infrastructure project intended to consolidate Singapore’s port operations in the city-state’s west.

CBRE brokered the transaction on behalf of Hup Hin, with the consultancy pointing to continued demand for Singapore industrial assets from both local and overseas capital.

“Investors recognise that quality industrial stock — particularly assets with strong specifications, strategic locations, and creditworthy tenants — remains in relatively short supply,” said Loh Lee Fen, head of Singapore industrial capital markets at CBRE. “In particular, in the current low interest rate environment, high-quality industrial assets with long leases and reliable income streams are particularly attractive to income-focused investors.”

Home-Market Push

The latest deal follows CLAR’s acquisition of a half-stake in Ascent for S$245 million and its announced purchase of 25 Loyang Crescent for S$504.2 million. The REIT disclosed those Singapore deals in March as part of S$1.4 billion in acquisitions that also included a S$620.7 million investment in a Greater Osaka data centre, marking the trust’s first foray into Japan.

CLAR is funding the total investment cost for 5 Tuas Avenue 5, estimated at S$136.5 million including fees and expenses, through a combination of proceeds from an April equity raising and debt financing.

After the Tuas acquisition, CLAR’s logistics portfolio across Singapore, Australia, the US and Europe will rise to S$4.9 billion, accounting for 26.2 percent of the trust’s S$18.7 billion portfolio value on a pro forma basis as of 31 March.

The deal comes less than two weeks after CapitaLand Group opened Geneo, its S$1.4 billion life sciences and innovation hub at Singapore Science Park, where CLAR holds all of 5 Science Park Drive and a 34 percent stake in 1 Science Park Drive, further extending the REIT’s footprint in a key city-state cluster.