CapitaLand Ascendas REIT (CLAR) announced it will acquire a data center and a business park for about S$700.2 million, according to its press release today. Both are fully leased to reputable tenants in the digital, e-commerce and financial services industries. The data center, a Tier III colocation data centre, is located at 9 Tai Seng Drive, while the business park is located at 5 Science Park Drive.
The acquisitions will deepen CLAR’s presence in Singapore, particularly in the technology sector. The two properties will increase the value of CLAR’s Singapore portfolio by 6.6% to approximately S$11.7 billion while the Singapore portfolio will account for 67% of CLAR’s total assets under management of S$17.6 billion.
William Tay, Executive Director and Chief Executive Officer of CapitaLand Ascendas REIT said, “The acquisitions aligns with CLAR’s strategy to leverage on global growth trends in technological advancement and digital transformation.”
Two of CLAR’s data centre properties, namely Kim Chuan Telecommunications Complex and 38A Kim Chuan Road, are a five-minute drive away from 9 Tai Seng Drive. All three properties are located in Tai Seng Industrial Estate, a strategic location for cloud service providers, enterprises and other data centre players due to its power availability and dense concentration of networks and direct connections to leading network service providers including Global Tier-1 internet service providers and the Singapore Internet Exchange.
5 Science Park Drive is part of the “Geneo” life sciences and innovation cluster in Singapore Science Park 1 and is fully occupied by Shopee, one of the largest pan-regional e-commerce platforms in Southeast Asia and Taiwan.
Following the completion of the acquisitions, CLAR will own 232 properties comprising 98 properties in Singapore, 34 properties in Australia, 50 properties in the US and 50 properties in the UK/Europe. CLAR is Singapore’s first and largest listed business space and industrial real estate investment trust.
