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 proposed procurement is roughly 7.6% pre-transaction prices and 7.4% post-transaction costs. The pro forma effect on the distribution per unit (DPU) for the financial year concluded Dec 31, 2023 is expected to be an improvement of around 0.019 Singapore cents, or a DPU increase of 0.1%, assuming the proposed acquisition was completed on Jan 1, 2023.
After including transaction-related fees and expenditures of $1.7 million, in addition to a $1.5 million acquisition fee paid off to the supervisor, the complete purchase expense will most likely be $153.4 million.
Finished in 2022, the estate 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 manager plans to fund the complete acquisition charge through a combination of inside sources, divestment proceeds and/or existing financial debt centers, according to a Dec 17 press release.
William Tay, executive director and CEO of the manager, states: “DHL Indianapolis Logistics Center is a strategic fit with our existing profile … This is CLAR’s primary sale and leaseback acquisition in the America and including this Class A logistics property, modern logistics assets will represent 42.3% of our United States logistics assets under control. With the lengthy rent in place, this real estate is going to better improve CLAR’s resistant revenue stream, and we anticipate the two brand-new real estates to contribute efficiently to our long-term returns.”
Following the procurement, DHL United States will participate in an extended leaseback till December 2035 of the real estate’s entire gross floor area (GFA) with opportunities to extend for two additional five-year terms.
The acquisition will certainly enhance the value of CLAR’s logistics assets under management (AUM) in the United States by 35.3% to some $587.5 million. With this purchase, CLAR’s logistics track in the US will broaden to 20 properties across four metros with a complete GFA of around 5.1 million sq ft.
Apart from this latest real estate in Indianapolis, CLAR’s logistics properties in the United States rise in Kansas City, Chicago and Charleston.
The wholly taken up building, with its weighted average lease to expiry (WALE) of roughly 11 years, will certainly enhance CLAR’s US profile WALE from 4.2 years to 4.7 years on a pro forma basis.
The lengthy lease term of about 11 years with integrated rent acceleration of 3.5% per annum will certainly supply revenue security and strengthen the resilience of CLAR’s selection, states the supervisor.
CapitaLand Ascendas REIT (CLAR) has already submitted to obtain DHL Indianapolis Logistics Facility, a Class A logistics real estate, from Exel Inc. d/b/a DHL Supply Chain (DHL USA) for $150.3 million. This is a 4.1% discount rate to the independent market valuation of the estate as at Jan 1, 2025.
