CLAR expands US logistics portfolio with first sale and leaseback acquisition for $150.3 million
Following the acquisition, DHL United States will participate in a long-term leaseback till December 2035 of the property’s entire gross floor surface area (GFA) with options to extend for 2 extra five-year terms.
The procurement will certainly raise the worth of CLAR’s logistics assets under management (AUM) in the US by 35.3% to some $587.5 million. With this acquisition, CLAR’s logistics presence in the America will definitely increase to 20 properties across four cities with a total GFA of roughly 5.1 million sq ft.
The first-year net property income (NPI) yield of the suggested purchase is about 7.6% pre-transaction costs and 7.4% post-transaction prices. The pro forma effect on the distribution per unit (DPU) for the financial year ended Dec 31, 2023 is expected to be an improvement of around 0.019 Singapore cents, or a DPU accumulation of 0.1%, presuming the recommended acquisition was finished on Jan 1, 2023.
The lengthy lease term of roughly 11 years with inbuilt rent acceleration of 3.5% per annum will supply income security and strengthen the durability of CLAR’s selection, says the manager.
After adding transaction-related charges and expenditures of $1.7 million, in addition to a $1.5 million procurement charge paid to the supervisor, the complete purchase cost will be $153.4 million.
Finished in 2022, the commercial property lies in Whiteland, a submarket in southeast Indianapolis, Indiana. The building is an entirely air-conditioned, single-storey logistics building with a GFA of 979,649 sq ft.
The manager means to pay for the overall procurement fee with a combination of inside resources, divestment proceeds and/or existing financial debt centers, according to a Dec 17 press release.
The completely occupied building, with its weighted average lease to expiry (WALE) of roughly 11 years, will certainly enhance CLAR’s US profile WALE from 4.2 years to 4.7 years on a pro forma basis.
CapitaLand Ascendas REIT (CLAR) has offered to get DHL Indianapolis Logistics Center, a Class A logistics real estate, from Exel Inc. d/b/a DHL Supply Chain (DHL U.S.A.) for $150.3 million. This is a 4.1% discount rate to the independent market evaluation of the property as at Jan 1, 2025.
Besides this latest real estate in Indianapolis, CLAR’s logistics possessions in the US rise in Kansas City, Chicago and Charleston.
William Tay, executive head and CEO of the manager, states: “DHL Indianapolis Logistics Center is a strategic fit with our existing profile … This is CLAR’s very first sale and leaseback acquisition in the America and including this Class A logistics property, contemporary logistics properties will certainly account for 42.3% of our United States logistics properties under management. With the long lease in position, this property will further boost CLAR’s resilient earnings stream, and we expect both brand-new real estates to add favorably to our extended returns.”
