CLAR expands US logistics portfolio with first sale and leaseback acquisition for $150.3 million
The completely taken up property, with its weighted average lease to expiry (WALE) of about 11 years, will certainly increase CLAR’s United States accounts WALE from 4.2 years to 4.7 years on a pro forma basis.
The procurement will enhance the worth of CLAR’s logistics assets under management (AUM) in the United States by 35.3% to some $587.5 million. With this acquisition, CLAR’s logistics track in the America will definitely increase to 20 properties across four towns with a total GFA of around 5.1 million sq ft.
After adding transaction-related fees and expenditures of $1.7 million, together with a $1.5 million procurement charge settled to the supervisor, the total procurement price will most likely be $153.4 million.
The lengthy lease term of approximately 11 years with built-in rental fee escalation of 3.5% per annum will certainly supply revenue security and reinforce the durability of CLAR’s collection, states the manager.
Following the acquisition, DHL United States will enter into a long-term leaseback till December 2035 of the building’s complete gross flooring area (GFA) with opportunities to renew for 2 extra five-year terms.
Apart from this most recent real estate in Indianapolis, CLAR’s logistics assets in the US are located in Kansas City, Chicago and Charleston.
The first-year net property income (NPI) yield of the proposed purchase is around 7.6% pre-transaction prices and 7.4% post-transaction prices. The pro forma influence on the distribution per unit (DPU) for the financial year finished Dec 31, 2023 is anticipated to be an improvement of about 0.019 Singapore cents, or a DPU rise of 0.1%, thinking the recommended acquisition was finished on Jan 1, 2023.
CapitaLand Ascendas REIT (CLAR) has recently proposed to acquire DHL Indianapolis Logistics Facility, a Class A logistics real estate, from Exel Inc. d/b/a DHL Supply Chain (DHL United States) for $150.3 million. This is a 4.1% price cut to the independent market assessment of the real estate as at Jan 1, 2025.
The manager intends to pay for the complete purchase cost through a mix of inner sources, divestment proceeds and/or existing financial debt centers, according to a Dec 17 announcement.
Finished in 2022, the property lies in Whiteland, a submarket in southeast Indianapolis, Indiana. The building is a completely air-conditioned, single-storey logistics building with a GFA of 979,649 sq ft.
William Tay, executive head and chief executive officer of the manager, mentions: “DHL Indianapolis Logistics Center is a strategic fit with our existing account … This is CLAR’s first sale and leaseback acquisition in the US and including this Class A logistics estate, modern-day logistics properties will certainly make up 42.3% of our US logistics assets under administration. With the extensive contract in place, this property will better enhance CLAR’s resilient revenue stream, and we anticipate the two new real estates to add efficiently to our long-term returns.”
