CLAR expands US logistics portfolio with first sale and leaseback acquisition for $150.3 million
The first-year net property income (NPI) revenue of the suggested purchase is about 7.6% pre-transaction expenses and 7.4% post-transaction prices. The pro forma effect on the distribution per unit (DPU) for the financial year finished Dec 31, 2023 is anticipated to be an improvement of around 0.019 Singapore cents, or a DPU accumulation of 0.1%, presuming the suggested acquisition was completed on Jan 1, 2023.
Following the purchase, DHL U.S.A. will participate in a continued leaseback till December 2035 of the real estate’s whole gross flooring area (GFA) with choices to extend for 2 additional five-year terms.
The completely occupied property, with its weighted average lease to expiry (WALE) of approximately 11 years, will raise CLAR’s US profile WALE from 4.2 years to 4.7 years on a pro forma basis.
Aside from this latest property in Indianapolis, CLAR’s logistics possessions in the US are located in Kansas City, Chicago and Charleston.
William Tay, executive director and chief executive officer 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 procurement in the America and including this Class A logistics estate, contemporary logistics investments will represent 42.3% of our United States logistics properties under control. With the long lease in place, this real estate will further improve CLAR’s resilient earnings stream, and we expect the two brand-new real estates to contribute positively to our extended returns.”
Completed in 2022, the commercial property is located in Whiteland, a submarket in southeast Indianapolis, Indiana. The property is an entirely air-conditioned, single-storey logistics building with a GFA of 979,649 sq ft.
The procurement will enhance the value of CLAR’s logistics assets under management (AUM) in the US by 35.3% to some $587.5 million. With this procurement, CLAR’s logistics footprint in the US will definitely broaden to 20 properties throughout 4 cities with a complete GFA of about 5.1 million sq ft.
CapitaLand Ascendas REIT (CLAR) has recently offered to get DHL Indianapolis Logistics Facility, a Class A logistics building, from Exel Inc. d/b/a DHL Supply Chain (DHL USA) for $150.3 million. This is a 4.1% discount to the independent market assessment of the estate as at Jan 1, 2025.
The manager intends to pay for the overall acquisition cost via a mix of inside resources, divestment proceeds and/or existing financial debt facilities, according to a Dec 17 announcement.
After adding transaction-related fees and costs of $1.7 million, in addition to a $1.5 million acquisition fee paid off to the supervisor, the complete acquisition price are going to be $153.4 million.
The long lease term of around 11 years with integrated rent acceleration of 3.5% per year will certainly give income stability and strengthen the resilience of CLAR’s profile, states the manager.
