REIT Oracle

CapitaLand Ascendas Buys Two Singapore Properties for S$700 Million

CapitaLand Ascendas REIT is acquiring a data centre and a business park in Singapore, for S$700.2 million:

The two properties are a Tier III colocation data centre at 9 Tai Seng Drive and a premium business space property at 5 Science Park Drive.

With a purchase consideration of around S$700.2 million, the proposed acquisitions will raise the value of Clar’s Singapore portfolio by 6.6 per cent to around S$11.7 billion. The Singapore portfolio will account for 67 per cent of its total assets under management (AUM) of S$17.6 billion.

To finance the operation, the trust has realized a private placement of S$500 million at S$2.47 per new share:

The price is a discount of 5.2 per cent of the volume weighted average price (VWAP) of S$2.6059 on Tuesday (May 27), its last traded closing price. Trading in the counter resumes on Thursday.

Japan's NTT to List Data Centre REIT in Singapore

Japanese telecom operator NTT will IPO a datacentre REIT in Singapore:

In its financial results released on May 9, NTT released details of its planned real estate investment trust (Reit) listing here. Six of its data centre assets will be transferred to the proposed Singapore Reit called NTT DC Reit for the price of around US$1.6 billion.

Brookfield Asset Management Looking for S-REIT Deals

The Business Times reports on Brookfield Asset Management hunt for deals in Singapore:

Many listed Reits in the country are trading at discounts to their net asset value, said Andrew Burych, managing partner and head of East Asia for the Canadian investment giant’s real estate group.

It’s “pretty interesting to work with these Reits to see if there are transactions we can do with them, so that they can recycle the capital into more core businesses,” he said.

Mapletree Industrial Sells Three Singapore Properties

Mapletree Industrial Trust is divesting of three industrial properties in Singapore for S$535.3 million:

The price is a 2.6% premium over the independent valuations of the properties as of March 31, and 22.1% over their original investment cost of $438.4 million.

Manulife US REIT Sells Atlanta Property to Reduce Debt

Manulife US REIT is selling Peachtree, an office building in Atlanta, USA, for US$133.8 million:

The rationale to divest Peachtree is to make early partial repayment of Manulife US Reit loans due in 2026. The proceeds will enable the Reit to pay down about 58 per cent of the US$203.9 million of loans maturing in 2026.

Mapletree Industrial to Sell Georgia Data Centre for US$11.8 Million

Mapletree Industrial Trust entered into an US$11.8 million agreement to divest a data centre in Georgia, US:

It entered into a purchase and sale agreement for the proposed divestment of a single-story data centre in the Northwoods Business Center with a third-party buyer. The property, located at 2775 Northwoods Parkway, Norcross, Georgia, has net lettable area of about 32,740 square feet (sq ft) and stands on freehold land with an area of around 140,341 sq ft.

Parkway Life REIT Selling Sole Malaysian Asset

Parkway Life REIT is exiting Malaysia by divesting of its sole Malaysian property, MOB Specialist Clinics in Kuala Lumpur:

The REIT says that the sale consideration amount is about 25.6% higher than the original purchase price of the property of RM16 million in 2012. It is 4.6% above the average of the latest valuation of the property at RM19.2 million as at Dec 31, 2024.

Paragon REIT Privatization Voted

The unitholders of Paragon REIT have voted in favor of the privatization offer:

During the scheme meeting on Tuesday (Apr 22), 1,000 unitholders or around 82.8 per cent of those present and voting, agreed to the privatisation offer. This represented about 97.6 per cent of units, well above the 50 per cent required of total voting minority shareholders, as well as the required 75 per cent in value of units.

CapitaLand Investment to List Chinese REIT

Singapore's CapitaLand Investment (CLI) will spin off a new REIT, CapitaLand Commercial C-REIT (CLCR), on the Shanghai Stock Exchange:

CLI says CLCR will invest in operating retail assets in China, benefiting from the Chinese government’s policies to stimulate domestic consumption.

Stoneweg E REIT Wants to Become a Stapled Trust

Stoneweg European REIT is proposing to convert into a stapled trust comprising both a REIT and a business trust:

The Manager believes that the Proposed Stapling will benefit Unitholders by providing Stoneweg European REIT with a future-proof corporate structure with optimal tax efficiency.

Furthermore, the stapled real estate investment trust (“REIT”) - business trust (“BT”) structure reduces reliance on passive rental income, balancing the more passive income stability of a REIT with the growth potential of a BT, making it more resilient to market cycles. While the REIT component benefits from preferential tax treatment in Singapore, having a stapled REIT-BT structure may allow for greater tax structuring flexibility, especially in Europe.