CapitaLand to sell 30 business park properties to Ascendas Reit for $1.66b

These include 28 office properties in the US and two facilities in Singapore.

CapitaLand will divest 30 of its business park properties in the US and Singapore to Ascendas Reit totalling $1.66b, the companies announced. The divestments are expected to be completed in Q4.

The USA properties comprised 28 freehold office properties located across six business parks in three tech cities San Diego, Raleigh and Portland, all valued at $1.28b (US$935m). Its tenants include Nike and Oracle.

The Singapore properties are Nucleos in one-north biomedical hub Biopolis, and FM Global Centre in Singapore Science Park 2, valued at $289m and $91m respectively.

Ascendas intends to fund the acquisition through a rights issue, a drawdown of loan facilities, and the issuance of the acquisition fee units.

Upon completion, CapitaLand expects to gain $95.4m, whilst The Ascendas estimated for the acquisitions to generate a first year net property income yield of 6.5% pre-transaction costs. Ascendas also expects its investment in the business and science park segment to be boosted 46% to $5.41b and for the properties to constitute 42% of its asset value of $12.8b.

According to Capitaland Group CEO Lee Chee Koon, this adds their total divestments to a total of $5.2b YTD 2019. He also said that the company will continue to manage these properties and receive an income in the process.