CLAR expands US logistics portfolio with first sale and leaseback acquisition for $150.3 million

CapitaLand Ascendas REIT (CLAR) has proposed to acquire DHL Indianapolis Logistics Center, a Class A logistics property, 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 valuation of the property as at Jan 1, 2025. After adding transaction-related fees and expenses of $1.7 million, along with a $1.5 million acquisition fee paid to the manager, the total acquisition cost will be $153.4 million. The manager intends to finance the total acquisition cost through a combination of internal resources, divestment proceeds and/or existing debt facilities, according to a Dec 17 press release. Read also: CLAR plans to divest Jalan Buroh property at significant premium to cost and valuation Advertisement Advertisement Following the acquisition, DHL USA will enter into a long-term leaseback till December 2035 of the property’s entire gross floor area (GFA) with options to renew for two additional five-year terms. The long lease term of approximately 11 years with built-in rent escalation of 3.5% per annum will provide income stability and strengthen the resilience of CLAR’s portfolio, says the manager. The fully occupied property, with its weighted average lease to expiry (WALE) of approximately 11 years, will increase CLAR’s US portfolio WALE from 4.2 years to 4.7 years on a pro forma basis. CapitaLand Ascendas REIT (CLAR) has proposed to acquire DHL Indianapolis Logistics Center, a Class A logistics property, 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 valuation of the property as at Jan 1, 2025. After adding transaction-related fees and expenses of $1.7 million, along with a $1.5 million acquisition fee paid to the manager, the total acquisition cost will be $153.4 million. The manager intends to finance the total acquisition cost through a combination of internal resources, divestment proceeds and/or existing debt facilities, according to a Dec 17 press release. Read also: CapitaLand Ascendas REIT to divest three Australian logistics properties for $64.2 mil Advertisement Advertisement Following the acquisition, DHL USA will enter into a long-term leaseback till December 2035 of the property’s entire gross floor area (GFA) with options to renew for two additional five-year terms. The long lease term of approximately 11 years with built-in rent escalation of 3.5% per annum will provide income stability and strengthen the resilience of CLAR’s portfolio, says the manager. The fully occupied property, with its weighted average lease to expiry (WALE) of approximately 11 years, will increase CLAR’s US portfolio WALE from 4.2 years to 4.7 years on a pro forma basis. Besides this latest property in Indianapolis, CLAR’s logistics assets in the US are located in Kansas City, Chicago and Charleston. William Tay, executive director and CEO of the manager, says: “DHL Indianapolis Logistics Center is a strategic fit with our existing portfolio… This is CLAR’s first sale and leaseback acquisition in the US and including this Class A logistics property, modern logistics assets will account for 42.3% of our US logistics assets under management. With the long lease in place, this property will further enhance CLAR’s resilient income stream, and we expect the two new properties to contribute positively to our long-term returns.”