CLAR expands US logistics portfolio with first sale and leaseback acquisition for $150.3 million
The acquisition will certainly increase 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 track in the US will definitely increase to 20 properties throughout 4 metros with an overall GFA of around 5.1 million sq ft.
Finished in 2022, the property stands in Whiteland, a submarket in southeast Indianapolis, Indiana. The property is a fully air-conditioned, single-storey logistics building with a GFA of 979,649 sq ft.
William Tay, executive director and CEO of the manager, states: “DHL Indianapolis Logistics Center is a strategic fit with our existing account … This is CLAR’s primary sale and leaseback acquisition in the America and including this Class A logistics estate, contemporary logistics investments will represent 42.3% of our US logistics possessions under control. With the long rent in position, this property is going to better enhance CLAR’s resistant revenue stream, and we anticipate the two new properties to contribute positively to our long-term returns.”
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The manager intends to pay for the overall purchase cost via a mix of inner resources, divestment proceeds and/or existing financial debt centers, according to a Dec 17 announcement.
The first-year net property income (NPI) revenue of the proposed acquisition is around 7.6% pre-transaction costs and 7.4% post-transaction prices. The pro forma influence on the distribution per unit (DPU) for the financial year stopped Dec 31, 2023 is expected to be an improvement of roughly 0.019 Singapore cents, or a DPU rise of 0.1%, thinking the proposed procurement was finished on Jan 1, 2023.
The long lease term of around 11 years with built-in lease acceleration of 3.5% per annum will supply income stability and enhance the durability of CLAR’s collection, says the supervisor.
CapitaLand Ascendas REIT (CLAR) has offered to obtain DHL Indianapolis Logistics Hub, a Class A logistics property, 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.
Apart from this newest property in Indianapolis, CLAR’s logistics properties in the US rise in Kansas City, Chicago and Charleston.
The completely taken up property, with its weighted average lease to expiry (WALE) of roughly 11 years, will increase CLAR’s US profile WALE from 4.2 years to 4.7 years on a pro forma basis.
After including transaction-related charges and expenses of $1.7 million, along with a $1.5 million acquisition cost paid off to the manager, the total procurement price will be $153.4 million.
Following the procurement, DHL United States will become part of a long-term leaseback till December 2035 of the building’s whole gross floor surface area (GFA) with possibilities to renew for two additional five-year terms.
