.Capitaland Ascendas REIT (CLAR) has announced its plans to expand its logistics assets in the UK with the acquisition of two plots of freehold land in the East Midlands region for $350.1 million. This marks a significant move for the REIT in the strategic UK logistics market, and is in line with its goal to increase its presence in this region.
The two plots of land, which are known as Manton Wood and Towcester, will be developed into four logistics properties by CLAR. At Manton Wood, the REIT will build a single-storey logistics property covering an area of 42,900 square metres. In Towcester, three single-storey logistics properties ranging from approximately 20,700 square metres to 38,300 square metres will be developed. These properties will offer eaves measuring 15 metres to 18 metres and feature ample trailer parking, good floor loading capacity, and deep yards for efficient operations.
This move will see CLAR’s UK portfolio grow by 27.2%, bringing its total value to $1.6 billion. This portfolio will then represent 10% of CLAR’s total assets under management (AUM) which currently stands at $17.2 billion. According to the REIT, the net property income (NPI) yield for the properties is expected to reach 7.3% pre-transaction costs and 6.9% post-transaction costs.
William Tay, executive director and CEO of the manager, says, “This marks a significant step in our strategy to expand CLAR’s UK logistics portfolio. These high-quality and environmentally-friendly logistics properties will strengthen our presence in the East Midlands, a key logistics market in the UK, and meet the strong demand for well-located, premium spaces by occupiers.”
Before investing in a condo, it is crucial to evaluate its potential rental yield. Rental yield refers to the yearly rental income compared to the property’s cost. In Singapore, condo rental yields can differ significantly based on factors such as location, property condition, and market demand. Generally, areas with high rental demand, like those near commercial centers or schools, offer better rental yields. It is essential to conduct thorough market research and seek advice from real estate agents to gauge the rental potential of a certain condo. For the latest information on new condo launches in Singapore, be sure to visit New Condo Launches.
Tay adds, “Including these two new projects, CLAR now has a total of eight ongoing projects which include developments, redevelopments, and asset enhancement initiatives in Singapore, the US and UK, with a combined value of approximately $850 million.” This latest acquisition is in line with CLAR’s plan to divest Jalan Buroh property at a significant premium to cost and valuation, and marks its first foray into logistics developments in the UK.