CapitaLand Ascendas REIT (CLAR) is continuing to make moves that highlight its focus on portfolio optimisation. With steady activity in the Singapore industrial property market, this latest update reflects how CLAR is reshaping its holdings while maintaining strong financial discipline.
Table of contents
- Divestment details
- The rationale behind this divestment
- How the proceeds will be used
- CLAR’s portfolio after the divestments
Divestment details
CapitaLand Ascendas REIT (CLAR) has announced plans to divest five industrial and logistics properties in Singapore for a total of S$329 million. The sale price reflects a 6% premium over their combined market value and a 20% premium over the initial purchase price of S$274.2 million. The assets in this deal are located at 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road, 19 & 21 Pandan Avenue, and 30 Tampines Industrial Avenue 3. The buyers are unrelated third parties, and the transaction was arranged with the help of CBRE.
According to CLAR, the divestments should be completed by the fourth quarter of 2025. That means you can expect to see changes in CLAR’s portfolio over the coming year as this deal moves toward closing.
The rationale behind this divestment
When you look at CLAR’s move, it becomes clear that this sale is part of a broader capital recycling strategy. By letting go of certain properties, the trust is aiming to improve its overall portfolio quality and deliver better returns for unitholders. In other words, you are seeing CLAR actively reshaping its portfolio to stay competitive in the industrial property market in Singapore.
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How the proceeds will be used
The divestment is expected to generate net proceeds of around S$313.1 million. These funds could be channeled in several ways. For example, they may be used to finance new investments, reduce debt, or even support working capital needs. Part of the proceeds may also be distributed to you as a unitholder, giving this deal direct relevance to your potential returns.
If the proceeds are applied to pay down borrowings, CLAR’s aggregate leverage ratio could fall from 37.7% to 36.6% on a pro forma basis, measured as of 31 December 2024. This shows how the sale could strengthen the trust’s financial position, while giving it more room for future asset management strategies.
CLAR’s portfolio after the divestments
Once the sale is finalised, CLAR will still manage a sizable property base. Its portfolio will include 226 properties worldwide, made up of 93 in Singapore, 34 in Australia, 49 in the United States, and 50 across the United Kingdom and Europe. This broad spread highlights CLAR’s focus on portfolio optimisation and diversification.
This transaction is not happening in isolation. In 2025 alone, CLAR has announced S$355.5 million in divestments. Earlier this year, it also completed the sale of Parkside, a business space property in Portland, US, for S$26.5 million. Interestingly, that deal closed at a 45% premium over its market value, further showing CLAR’s ability to unlock strong value from its assets.
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